S&P cuts Ezdan

S&P said it downgraded Ezdan Holding Group QSC to CCC from B- and its sukuk to CCC- from CCC+. The agency also removed the ratings from CreditWatch where they were placed with negative implications on May 5.

The downgrade reflects that near-term refinancing risk is high because Ezdan is still negotiating a new credit line. Its $500 million senior unsecured sukuk matures May 18. Also, Ezdan has about QAR 900 million of debt maturing in 2021.

“Ezdan’s liquidity is insufficient to repay its large maturing debt. Over the 12 months from Dec. 31, 2020, we anticipate the company will need more than QAR 2.8 billion to cover its maturing debt and scheduled amortization,” S&P said in a press release.

The outlook is negative.

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