Moody's drops Shuaa to junk

Moody's Investors Service said it downgraded the long-term foreign- and local-currency issuer ratings of Shuaa Capital PSC to Ba1 from Baa2 and its short-term ratings to Not-Prime.

The outlook is negative.

The action concludes the review for downgrade that began on Dec. 10.

"The downgrade was prompted by the company's deteriorating fundamentals, especially its recurring profitability and weakening liquidity profile, which has become heavily reliant on short-term bank lines to finance relatively illiquid assets," John Tofarides, an analyst at Moody's, said in a statement.

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