Moody's lowers Saad

Moody's Investors Service said it has downgraded the ratings of Saad Trading Contracting & Financial Services Co., Saad Investments Co. Ltd. and Saad Group Ltd. to B1 from Baa1.

Moody's said it has placed the ratings on review for further downgrade.

The rating action follows public reports that the Saudi Arabia Monetary Authority may have ordered that the accounts belonging to Saad's majority owner and Chairman be frozen, the agency said, noting that no reason has yet been given for this action, and the disclosure relating to this development has been limited.

Moody's noted that the events of the past few days have resulted in heightened risk of default at entities of the Saad Group, if they face increased contagion from disputes originating from the shareholder.

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