DIFC Investments LLC, which owns properties in Dubai’s tax-free financial center, may have its credit rating cut at Standard & Poor’s due to “heightened refinancing risk” on its US$1.25 billion Islamic bond due in June.
DIFC Investments “has little room for delays in its efforts to secure a bank loan and government support to refinance the sukuk,” the rating agency said in a statement. The B+ long-term and B short-term ratings were placed on creditwatch with negative outlook.
DIFC Investments started talks with banks for a loan to help pay the bond, two bankers with knowledge of the plan said in March. The company plans to raise $900 million to $1 billion from a five-year syndicated loan and will make up the rest with its own cash, said the bankers, who declined to be identified because the information is private.
Is this the impact of Euro-zone crisis ?
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