Moody's cuts NIG notes

Moody's Investors Service said it downgraded to B3 with a stable outlook from B2 with a negative outlook the corporate family and probability of default ratings of National Industries Group Holding SAK as well as the instrument rating for the $475 million of sukuk issued by NIG Sukuk Ltd.

In recent months, NIG has taken a number of steps to reduce its exposure to refinancing risk by renegotiating on a longer-term basis some short-term credit facilities in conjunction with formulating and beginning to pursue various strategies in anticipation of redeeming and refinancing the August 2012 sukuk maturity, the agency said.

The ratings and outlook considers the execution risk associated with the steps still to be taken in anticipation of the sukuk maturity in 12 months time to ensure a strengthening of its overall risk profile and a reduction of the group's default risk, the agency added.

The ratings also consider that it may take some time for NIG to strengthen its current financial profile, the agency noted.

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