Fitch revises Arabian Centres view to negative

Fitch Ratings said it revised the outlook on Arabian Centres Co. to negative from stable and affirmed its issuer rating at BB+. Fitch also affirmed the BB+ unsecured rating and BB+ rating of the sukuk trust certificates issued through Arabian Centres Sukuk Ltd.

The outlook reflects exposure to the nascent Saudi Arabian retail market, which continues to be affected by an economic slowdown, a tripling of VAT, which may impact consumer spending, and most recently, Covid-19. The company's rental income is also vulnerable due to a short-term lease profile and potential downward pressure from related-parties, Fitch said.

Fitch assigned Arabian Centres’ a new national long-term rating of A-(sau) with a stable outlook. Fitch said it used Saudi Arabia's national rating correspondence table and relativities with national peers to determine the national scale rating following Fitch's national scale rating criteria.

Fitch also assigned Arabian Centres a long-term local-currency issuer rating of BB+ with a negative outlook.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.