We are publishing our recovery analysis on Abu Dhabi-based property company Aldar Properties PJSC (Aldar) and the $1.25 billion 10.75% senior unsecured notes due May 2014, issued by Atlantic Finance Ltd. and guaranteed by Aldar, and the UAE dirham (AED) 3.75 billion al-ijarah sukuk due June 2013, issued by special purpose vehicle Sukuk Funding (No.2) Ltd. We have based our analysis on a discrete asset valuation. Our simulated default scenario contemplates a weakening of the general economic environment, leading to reduced free cash flow generation and an inability for Aldar to refinance its maturing debt in 2013. We have assigned a recovery rating of '4' to the instruments, reflecting average (30%-50%) recovery for creditors. The ratings are constrained by our...
Companies mentioned in this report are: Aldar Properties PJSC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis