S&P Says Qatar Developer Ezdan Faces Restructuring, Default Risk - Bloomberg
Ezdan Holding Group said it’s finalizing a bank facility to fully repay its $500 million sukuk maturing in May after S&P Global Ratings said the Qatari property developer faces the risk of a default or debt restructuring.
“The company is currently in the final stage of finalizing a facility agreement with a major bank for repayment of sukuk 2021 fully,” it said in a statement on Friday. Ezdan said it plans to repay another $500 million sukuk maturing in April 2022 mainly through operating cash flows and bank balances.
Bonds of Ezdan slumped Thursday after S&P cut the company’s ratings to CCC from B- with a negative outlook, citing it reflected narrowing liquidity and high debt balances that could lead to a distressed exchange, debt restructuring or default over the next 3-12 months.
The company’s dollar bonds due in May slid by 6.6 cents to 90.45 cents on the dollar on Thursday, the biggest decline in about 10 months.
“Ezdan confirms and is committed that the cash and bank balances, cash flows from operations, and the credit lines available to Ezdan will be sufficient to repay sukuk maturing in May 2021 and April 2022,” it said.
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