Friday 27 April 2012

DIFC Investments may be cut at S&P on Sukuk refinance risk - bi-me.com

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.

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