Saudi's Dar Al Arkan (4300.SA), the kingdom's second-biggest property company, now has sufficient liquidity to repay a 3.75 billion Saudi riyal ($1 billion) Islamic bond, or sukuk, due in July, ratings agency Standard & Poor's said on Monday.
S&P, in a statement, affirmed Dar Al Arkan's 'B+' long-term corporate credit rating and removed it from CreditWatch after downgrading the developer in February, arguing at the time that its high level of debt left it exposed to swings in property demand.
The latest S&P action comes after Dar Al Arkan raised cash through the sale of part of a residential project to Saudi Basic Industries Corp. (2010.SA), or Sabic, for SAR741.7 million Saudi riyals ($197.8 million) late last month. It has also raised new bank debt of SAR563 million and showed strong operating cash flow in the first quarter of the year, S&P said.
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