Moody’s Downgrades Rating on Arabian Centres Company’s USD 500 Million Sukuk
May 28, 2020
Email In a publication issued on the 26th of May 2020, Moody’s Investors Services (Moody’s) announced the downgrade of Arabian Centres Company (ACC)’s USD 500 million Sukuk due 2024 (issued by Arabian Centres Sukuk Limited) to Ba3 from Ba2. ACC is the largest owner and operator of retail malls in Saudi Arabia.
On the same day, Moody’s also downgraded ACC’s corporate family rating (CFR) to Ba2 from Ba1, and has placed all ratings under review for a downgrade. The Outlook on all ratings has been revised to ‘Ratings under Review’ from ‘Stable’. The Ba3 rating on the Sukuk remains a notch lower than the CFR, reflecting the Sukuk’s subordination to secured debt.
