Moody’s cuts Arabian Centres

Moody’s Investors Service said it downgraded Arabian Centres Co.’s corporate family rating to Ba2 from Ba1. Moody’s also downgraded to Ba3 from Ba2 the $500 million sukuk due in 2024 issued by Arabian Centres Sukuk Ltd.

At the same time, Moody’s placed all ratings on review for downgrade. The outlook has been changed to ratings under review from stable.

“The downgrade of the CFR to Ba2 from Ba1 is driven by an expected increase in leverage stemming from a likely decline in rental income over the course of the next 12 months due to the business disruptions caused by the outbreak of the coronavirus,” said Julien Haddad, a Moody’s vice president, senior analyst and the local market analyst on the company, in a press release.

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