SP downgrades Qatari Ezdan Holding on higher default risk

SP downgrades Qatari Ezdan Holding on higher default risk

S&P Global Ratings has downgraded Qatar's biggest property developer, Ezdan Holding, as it faces near-term refinancing risk related to its $500 million senior unsecured sukuk maturing on May 18, 2021.“We are lowering our long-term issuer credit rating on Ezdan to 'CCC' from 'B-' and our issue ratings on its sukuk to 'CCC-' from 'CCC+' and removing them from CreditWatch, where we placed them with negative implications May 5, 2020,” the agency said in a report Thursday.The downgrade reflects S&P's view that near-term refinancing risk is high because Ezdan is still in negotiations to secure a new credit line. Its $500 million senior unsecured sukuk matures May 18, 2021. In addition, Ezdan has about 900 million Qatari rial of debt maturing in 2021.“While we understand that discussions are ongoing and the shareholder remains committed to support the company, Ezdan does not have access to any committed credit facilities at this stage. With less than three months remaining to maturity, we believe the company's refinancing options are narrowing and the risk of restructuring, distressed exchange, or default is increasing,” the global ratings agency said.“Without a committed refinancing plan or an equity contribution from its shareholder, we do not believe that Ezdan has