S&P rates Majid Al Futtaim notes BB+

S&P said it assigned its BB+ issue rating to the planned dollar-denominated subordinated hybrid notes to be issued by Majid Al Futtaim Holding LLC (MAF Holding) through its fully owned subsidiary MAF Global Securities Ltd. The offering size will depend on market conditions.

The notes will be conditionally guaranteed, jointly and severally, by MAF Holding and Majid Al Futtaim Properties LLC. The instruments will be perpetual and optionally deferrable.

The BB+ rating is based on MAF Holding’s BBB issuer rating. S&P said it deducts a notch for subordination and another for the option to defer interest payments.

MAF Holding is expected to use the proceeds to replace $500 million outstanding of perpetual notes sold in March 2017, via a tender offer at the time of issuance, to allow for their replacement with the expected notes.

The outlook is stable.

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