S&P Says Qatar Developer Ezdan Faces Restructuring, Default Risk

Ezdan Holding Group faces the risk of debt restructuring or default as the Qatari real estate developer is yet to obtain credit-lines to meet upcoming maturities, according to S&P Global Ratings, Bloomberg News reported. “Despite discussing payment option plans, the company is still in the negotiation stage of securing a committed credit line to address its significant upcoming debt maturities and amortization schedule,” according to the ratings agency. S&P cut Ezdan’s rating to CCC from B- with negative outlook. Ezdan’s $500 million senior unsecured sukuk matures on May 18. The property developer also has about 900 million riyals ($245 million) of secured debt maturing in 2021 and 2.7 billion riyals of sukuk and debt maturing next year, according to S&P. The ratings agency also said that the negative outlook reflects “narrowing liquidity and high debt balances, which could lead to a distressed exchange, debt restructuring, or default over the next 3-12 months.” Read more.