Fitch may cut Sobha Developers

Fitch Ratings said it placed Sobha Developers Ltd.'s F2+(ind) rating on its Rs.1,000 million short-term debt program on rating watch negative.

The negative watch reflects the increasing liquidity risks for Sobha, driven by a slowdown in residential demand and uncertainty related to infusion of equity through its proposed rights issue, Fitch said.

These risks could potentially impact Sobha's ability to refinance/repay its debt obligations in the near term, the agency said. Fitch said it anticipates that the watch will be resolved by mid-February.

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