Fitch rates Arada sukuk BB-

Fitch Ratings said it assigned Arada Developments LLC's upcoming senior unsecured sukuk an expected rating of BB-/RR3. The sukuk will be issued through the trustee, Arada Sukuk Ltd. The agency also assigned Arada Development an expected senior unsecured rating of BB-.

ASL is incorporated in the Cayman Islands as an exempted company with limited liability for the sole purpose of issuing the certificates. Arada’s wholly-owned subsidiaries Aljada Development and Masaar Developments are the sellers and Arada is the obligor, lessee, buyer and service agent.

The sukuk's rating is linked to Arada's long-term issuer rating, which reflects the agency’s view that a default of the senior unsecured obligations would reflect a default of Arada under its rating definitions, Fitch said.

Arada will use the proceeds to repay most of Arada’s secured term loans.

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