Moody's affirmed its ratings on Dar Al Arkan Real Estate Development Co. and changed its ratings outlook on the company to positive from stable.
Specifically, the rating agency affirmed Dar Al Arkan's B1 corporate family rating, the existing (P) B1 and B1 ratings for debt issued under the US$2 billion trust certificate issuance program of Dar Al-Arkan Sukuk Co. Ltd. and its B1-PD probability of default rating.
Moody's said in a note that the revision in outlook echoes the real estate developer's solid liquidity profile, with the company's cash balance increasing to 3.2 billion Saudi Arabian riyals from 582 million riyals, enough to settle its 2018 sukuk, 2019 sukuk and bank debt, which are all maturing over the next 24 months.
Post-2019, the company's next significant maturity will be its 2022 sukuk.
As of March 3, US$1 was equivalent to 3.75 Saudi Arabian riyals.
