Moody’s Lowers Jafza Outlook To Negative

Moody’s Investors Service has changed the outlook for the Corporate Family (CFR) and Probability of Default Rating (PDR) of Jebel Ali Free Zone (Jafza) to ‘developing’ from ‘negative’ and affirmed the B2 CFR and PDR as well as the B2 rating for Jafza’s November 2012 certificates issued by Jafza Sukuk, Reuters has reported.

The outlook change signals Moody’s view that Jafza has taken positive steps in addressing its November 2012 sukuk maturity that could remove some rating constraints factored into the current B2, especially liquidity risk, if finalised.

The developing outlook considers the range of potential outcomes as well as the ramifications for the company’s certificates holders, Moody’s said.