Dar Al Arkan shares fail to bank on Moody’s rating
The Tadawul All-Shares Index TASI consolidated above 11,000 points on Wednesday, September 3. The gauge closed 0.12 per cent higher at 11,061.14.
Earlier in the day, Saudi British Bank (SABB) said the the seasonally adjusted SABB HSBC Saudi Arabia Purchasing Managers’ Index™ (PMI™), increased in August to 60.7, up from 60.1 in the month before, representing the highest reading since July 2011.
SABIC climbed 0.91 per cent to reach SAR134.25.
Dar Al Arkan Real Estate Development Company (DAAR) fell by 0.90 per cent to SAR15.55.
Earlier in the day, the developer said that rating agency Moody’s has upgraded its corporate credit rating to Ba3, with stable outlook, “which represents an improvement to Standard & Poors current rating at (B+)”, said DAAR.
Daar quoted the Moody’s report saying the rating “reflects the strength in the operating and business environment including supportive macro fundamentals in the Kingdom of Saudi Arabia with favourable demographics, large government social spending programmes and a housing deficit, DAAR has significant value in assets including growing recurring income assets portfolio and demonstrated a track record of following a more conservative financial policy including prefunding upcoming debt maturities.”