Jun 11 2012
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Saudi's Dar Al Arkan Has Sufficient Liquidity To Repay SAR3.75B Sukuk -S&P
DUBAI (Zawya Dow Jones)--Saudi's Dar Al Arkan (4300.SA), the kingdom's second-biggest property company, now has sufficient liquidity to repay a 3.75 billion Saudi riyal ($1 billion) Islamic bond, or sukuk, due in July, ratings agency Standard & Poor's said on Monday.
S&P, in a statement, affirmed Dar Al Arkan's 'B+' long-term corporate credit rating and removed it from CreditWatch after downgrading the developer in February, arguing at the time that its high level of debt left it exposed to swings in property demand.
The latest S&P action comes after Dar Al Arkan raised cash through the sale of part of a residential project to Saudi Basic Industries Corp. (2010.SA), or Sabic, for SAR741.7 million Saudi riyals ($197.8 million) late last month. It has also raised new bank debt of SAR563 million and showed strong operating cash flow in the first quarter of the year, S&P said.
In April, Dar Al Arkan, which has most of its land holdings within the cities of Riyadh and Jeddah, said first-quarter net profit rose 7.1% to 292.6 million Saudi riyals ($77.9 million), compared with the same period a year earlier, due to higher gross margins on real-estate sales.
-By Iman Dawoud, Dow Jones Newswires; +971 55 1093341; firstname.lastname@example.org: Twitter: @ZDJnews
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