Dar Al Arkan Real Estate Development Co, Saudi Arabia’s biggest developer by market value, said Moody’s Investors Service withdrew its ratings because the company wanted to reduce costs.
“This withdrawal is not due to disagreement in any way with Moody’s,” said Dar Al Arkan General Manager Saud Al Gusaiyer in a phone interview. “The current business climate requires our management to evaluate the expenses and time committed to the multi-rating review exercising.”
Moody’s withdrew Dar Al Arkan ratings yesterday, citing “business reasons.” The agency’s last credit rating action on Dar Al Arkan was on November 10 when it was lowered one level to Ba3, the third-highest non-investment grade, citing maturing debt and decline in land sales.
Three rating services now assess the company’s performance, Al Gusaiyer said. “There were four agencies and only one rating instrument.”
Dar Al Arkan has a non-investment grade rating of BB- from Standard & Poor’s, AA3 from RAM Rating Services and A- from Capital Intelligence. Dar Al Arkan is required to repay SR7.8bn ($2.1bn) of debt maturing through 2015.
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