S&P removes the credit watch from Dar Al-Arkan (1260F)

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RNS Number : 1260F

Dar Al-Arkan International Sukuk II

11 June 2012

Standard & Poor's removes the negative credit watch from Dar Al-Arkan's rating

Dar Al Arkan (DAAR) announces that Standard & Poor's has removed the negative credit watch from DAAR's rating, and affirmed DAAR's long-term corporate rating at B+, with a stable outlook

Dar Al Arkan Real Estate Development Company today announces that the international credit rating agency, Standard & Poor's (S&P) has removed the negative credit watch from Dar Al Arkan's (DAAR) rating. S&P has now affirmed DAAR's long-term corporate rating at B+, with a stable outlook.

S&P bases its decision on DAAR's strengthened liquidity position and its demonstrated capacity to honor its upcoming US$1 billion debt obligation maturing on 16(th) of July 2012. The announcement highlighted the sale of developed land to SABIC for SAR 742 million as a key initiative that has enhanced DAAR's liquidity position.

DAAR's Chief Financial Officer, Andy Raheja commented "We are pleased to see that the rating agencies are recognizing the strength of our balance sheet. Our historical decision to invest solely in the Saudi Arabian residential real estate market has helped us avoid many of the global and regional problems. The continued resilience and liquidity of the Saudi market is allowing us to generate the funds needed to repay SAR 4.7 billion of debt in a 12-month timeframe from mid-2011 to mid-2012."

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