Moody’s downgrades Ezdan

Moody's Investors Service said it downgraded Ezdan Holding Group QSC's corporate family rating to B1 from Ba1, the senior unsecured medium-term note rating, and the associated senior unsecured debt instrument ratings, of Ezdan Sukuk Co. Ltd. to provisional B1 from provisional Ba1 and B1 from Ba1, respectively.

The outlook was changed to stable from under review. This concludes the review that was announced on Nov. 29.

"Today's action reflects our reduced confidence in the company's ability to deleverage the business as well as changes in financial policies relative to our original expectations which no longer are commensurate with a Ba-rated company" Moody's assistant vice president, analyst Lahlou Meksaoui said in a news release.

"In the context of a weakening operating environment which is negatively impacting growth, Ezdan is operating under a tight liquidity profile which has further weakened following the decrease in its equity portfolio and may also face further cash flow and covenant pressure over the coming quarters."

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