Qatar’s biggest property developer Ezdan Holding Group faces the risk of a default or debt restructuring as it is yet to obtain credit-lines to meet upcoming maturities, according to S&P Global Ratings.
S&P cut Ezdan’s rating to CCC from B- with a negative outlook, reflecting narrowing liquidity and high debt balances, which it said could lead to a distressed exchange, debt restructuring, or default over the next 3-12 months.
“Without a committed refinancing plan or an equity contribution from its shareholder, we do not believe that Ezdan has sufficient cash or liquid assets on its balance sheet to repay its debt,” the ratings agency said.
Ezdan shares slumped 8% in Doha, before trimming losses to 2.1%. The stock has underperformed Qatar’s main stock index so far this year. The company did not immediately respond to emails seeking comment.
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