Moody’s Investors Service has placed on review for potential downgrade the Ba2 ratings for Dar Al-Arkan Real Estate Development Company, Saudi Joint Stock Company (DAAR), Dar Al-Arkan International Sukuk Company II (DAAR ISC II) and the $450m certificates (sukuk).
Moody’s decision to place the ratings on review follows the company’s reporting of marginally weaker operating performance in the first half of 2010 as compared to 2009 and higher shareholder remuneration payments than originally expected by Moody’s resulting in some key credit metrics such as FFO/Debt at 23.5% being below the threshold of 25% originally set for the rating category while free cash flow for the period was also negative……………………………………….Full Press Release: Source