Saad Group loses credit ratings

Saad Group, the troubled conglomerate partly owned by Saudi billionaire Maan Al Sanea, has had its ratings withdrawn by Moody’s and Standard & Poor’s (S&P), who both cited a lack of information about the company’s finances.

“The ratings have been withdrawn because Moody's believes it lacks adequate information to maintain the ratings,” Moody’s said in a statement dated June 2.

Moody’s downgraded Saad Group and its related entities to B1 from Baa1 on Monday after the company said it was restructuring its debt, and following media reports that owner Al Sanea was facing liquidity problems.

S&P lowered its long term and short term corporate credit ratings on the group to D/D from BBB+/A-2 on Tuesday, before withdrawing the ratings due to a lack of information.

The group had also requested to have its credit ratings withdrawn, it said.

A D rating indicates that the borrower has defaulted on obligations and that S&P believes it will generally default on most or all of its obligations.

Saad Group's management is in the process of entering into a standstill agreement, by which debt service payments are suspended, with its creditors, S&P said.

Saudi press reported earlier this week that the Saudi central bank, SAMA, has ordered all banks to freeze the accounts of Al Sanea and his family.

Saad Trading Contracting and Financial Services Company and Saad Investments Company Limited have revolving credit facilities of $2.75bn and $2.8bn respectively, both of which are close to fully withdrawn, Moody’s said on Monday.

Saad Group has appointed Bahrain-based BDO Capital Finance to advise on its restructuring plans.

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