Fitch: Alaqaria, Barwa may merge

Fitch Ratings said that it notes that following an announcement by the Qatari government, a merger of Qatar Real Estate Investment Co. Q.S.C. (Alaqaria) and Barwa Real Estate Co. Q.S.C. could occur, adding that the two corporates are currently studying the proposal.

According to Fitch, Alaqaria presently has a long-term issuer default rating of BBB+ and a short-term issuer default rating of F2.

The outlook for the long-term issuer default rating is stable.

While the potential merger was announced by the ministry of trade, there is currently no detail on the structure, timing or likelihood of any potential transaction and, as such, Fitch said it does not intend to take any rating action at this time.

However, the agency said it will closely monitor the transaction's possible evolution and evaluate the impact of any changes to Alaqaria 's business and financial profile. rating actions could occur going forward if the merger is executed.

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