Fitch upgrades Arada sukuks

Fitch Ratings said it upgraded United Arab Emirates-based Arada Developments LLC's senior unsecured rating to BB from BB- and the sukuk trust certificates issued through Arada Sukuk Ltd. (ASL) to BB/RR2 from BB-/RR3. The agency also affirmed Arada's long-term issuer default rating at B+ with a stable outlook. The senior unsecured ratings have been removed from under criteria observation.

“The upgrade of the instrument ratings follows changes under Fitch's country-specific treatment of recovery ratings criteria published in March 2023. Fitch moved the UAE to a Group B country, from Group C, which allows the cap for Arada's instrument ratings to be two notches above the IDR. Arada's IDR reflects a stand-alone credit profile (SCP) of b and a one-notch uplift for Sharjah government support, as assessed under Fitch's government-related entity (GRE) criteria,” the agency said in a press release.

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