S&P hikes Ezdan

S&P said it raised Ezdan Holding Group’s rating to B- from CCC and its sukuk to CCC+ from CCC-.

“Ezdan generated QAR 300 million-QAR 350 million in free operating cash flows (FOCF) in 2021 and secured a QAR 830 million financing, supporting liquidity ahead of its QAR 1.8 billion sukuk repayment in April 2022.With cash of QAR 1.1 billion estimated at the end of 2021 and the financing to repay the upcoming sukuk maturity in less than a week, we think that Ezdan's short-term default risk is now remote,” S&P said in a press release.

Additionally, the agency said it sees Ezdan’s revenue increasing by more than 40% in 2022 on demand for rentals in its residential segment and hotels on World Cup attendance.

The outlook is stable.

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