Fitch Affirms Arabian Centres Company’s IDR and Sukuk Rating at ‘BB+’; Sukuk Improves Capital Structure

Fitch Ratings (Fitch) has affirmed the Long-Term Foreign Currency Issuer Default Rating (IDR) and unsecured rating of Saudi Arabia-based real estate company, Arabian Centres Company (ACC) at ‘BB+’, with a Negative Outlook. Fitch has also affirmed the unsecured rating and rating of the Sukuk trust certificates issued through Arabian Centres Sukuk Limited (ACSL) at ‘BB+’.

Ratings Rationale

The ratings reflect ACC’s standing as the largest retail real estate company in Saudi Arabia (A/Stable) with a portfolio of 21 shopping centres located in the country’s largest cities. ACC improved its capital structure by issuing a new USD 650 million Sukuk in April 2021, followed by a USD 225 million tap in July 2021, which was...