Dar Al Arkan given BB- rating

The long-term corporate credit rating of Saudi real estate developer, Dar Al Arkan (DAAR) has been assigned 'BB-' by Standard & Poor's Ratings Services, with 'Stable' outlook. "The ratings on DAAR reflect its exposure to the speculative, cyclical, and capital-intensive nature of land development and homebuilding activities; the immature and still-opaque characteristics of the housing market in Saudi Arabia (AA-/Stable/A-1+); the volatility of revenues from land sales; the potential execution risks from its increasingly large projects; and its financial risk profile, which we consider to be significant," said Standard & Poor's credit analyst Pierre Georges.