Standard & Poor's Ratings Services said today that it has revised the CreditWatch implications on its 'B' long-term and 'B' short-term issuer credit ratings on Abu Dhabi-based property company Aldar Properties PJSC (Aldar) to developing from negative.
"We initially placed the ratings on CreditWatch with negative implications on November 15, 2010, in response to challenging real estate market conditions, delays in property handovers, and collection problems," S&P said.
"We revised the CreditWatch implications following the announcement of a financial framework for Aldar, including the 19.2 billion United Arab Emirates dirham (AED) of cash inflow from asset sales to and reimbursements from the government and the placement of an AED2.8 billion mandatorily convertible bond with Mubadala Development Co. PJSC (Mubadala; AA/Stable/A-1+), 100% owned by the Abu Dhabi government," said Standard & Poor's credit analyst Tommy Trask.
The issuance and subsequent conversion of the convertible bond, which is subject to shareholder approval, may raise Mubadala's stake in the company to about 49%, strengthening the link between Aldar and the government of Abu Dhabi.
No comments:
Post a Comment