Moody's assigns Arada, sukuk B1

Moody's Investors Service said it assigned B1 ratings to Arada Developments LLC and its planned benchmark-sized senior unsecured sukuk to be issued by Arada Sukuk Ltd. The outlook is stable.

The B1 ratings indicate the company’s robust track record of support from strategic and influential shareholders, good profitability and revenue visibility in the market, because of healthy demand for Arada's custom-made and good quality master development projects and improved liquidity profile after the sukuk transaction.

Offsetting these strengths are the Arada’s small scale and limited track record in developing and delivering properties through economic cycles; business concentration, with only two projects currently launched; and the lack of geographic diversity outside Sharjah, which exposes it to event risks.

“The stable outlook reflects our expectation that Arada's financial performance will remain strong over the next 12-18 months and will continue to benefit from the recent positive trends in the UAE's property sector,” Moody’s said in a press release.

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