DUBAI,(Reuters) – Moody’s withdrew its ratings on Saudi Arabia’s largest property developer Dar al Arkan4300.SE late on Monday, citing its own business reasons.
The ratings agency’s last action on the Saudi firm was a November downgrade to Ba3 with a stable outlook from Ba2.
“Under certain circumstances, Moody’s will withdraw a rating for an issuer or an obligation for reasons unrelated to the adequacy of information, or bankruptcy or reorganization status of the credit,” the agency’s withdrawal policy says.
“When this occurs, Moody’s will balance the market need for a rating against the resources required to maintain and monitor a rating.
The Saudi firm, which has a $1 billion Islamic bond maturing in 2012, in November said it would not need to tap debt markets to help repay the maturity but did not rule out asset sales.
The property developer raised $450 million riyals from a sukuk issue in February 2010, just in time to refinance a $600 million sukuk maturing last March.
Analysts in a Reuters poll last week forecast average fourth quarter earnings of 291.58 million riyals ($77.73 million) The company had net profit of 289.6 million riyals in the third quarter.