Fitch gives Arada Developments B+

Fitch Ratings said it gave Arada Developments LLC an expected B+ long-term issuer default rating.

Arada's B+ rating is based its stand-alone credit profile of b and a one-notch uplift for support from the Sharjah government, as assessed under Fitch's government-related entity criteria. Arada was established in 2017 to develop fully-integrated communities in Sharjah, the agency explained.

“The Sharjah government provides support to Arada, particularly for land to develop Aljada, the largest community project ever in Sharjah. This included an initial government debt guarantee to buy the land and subsequently converting the debt into a 16-year payable,” Fitch said in a press release.

Arada’s final rating depends on the planned benchmark-size unsecured sukuk being issued, the proceeds of which will be used to repay current debt and fund future developments, the agency said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.