S&P lowers Dar Al Arkan

Standard & Poor's said it lowered the long-term issuer credit rating on Dar Al Arkan Real Estate Development Co. to B+ from BB-.

The rating also was placed on CreditWatch with negative implications.

The downgrade and the CreditWatch placement reflect heightened refinance risk for Dar Al Arkan as it faces 2012 debt maturities, S&P said.

The company's ability to meet debt due in the current year depends on continued strong demand for developed land, the collection of receivables and refinancing of the Al Qasr Mall, the agency said.

S&P said it believes that Dar Al Arkan's reliance on a few developed land sales transactions each quarter introduces significant risk to the timing of its operating cash inflows.

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