Moodys updates Dar Al-Arkan’s outlook to stable on weak 2019 financials

Moody's Investors Service changed Dar Al-Arkan Real Estate Development Co.'s outlook to stable from positive, it said in a statement on Thursday.

The credit ratings agency also affirmed Dar Al-Arkan’s B1 corporate family rating (CFR), the existing (P)B1 and B1 ratings for debt issued under the $2 billion trust certificate issuance program of Dar Al-Arkan Sukuk Co. Ltd., and its B1-PD probability of default rating (PDR).

"The change of outlook to stable from positive is due to the developer's weaker than expected results in 2019 and our expectation that market conditions will remain challenging over the next 12 to 18 months," Julien Haddad, Moody's Vice President - Senior Analyst and local market analyst for Dar Al-Arkan, said.

"The rating affirmation reflects the company's strong liquidity profile and its disciplined and conservative approach in managing its debt maturity profile," he added.