S&P Forecasts Resilience for GCC Firms Amid 2024 Refinancing Challenges

UAE, 05 March, 2024 :  S&P Global affirms that most GCC corporate and infrastructure firms will withstand 2024's refinancing needs, benefiting from supportive credit conditions despite global economic softness and geopolitical risks. With optimistic growth in EBITDA and capital expenditure reflecting ambitious economic plans, credit metrics are expected to remain stable or slightly improve.

Refinancing risk appears manageable, especially for government-related entities (GREs), which account for 75%-80% of maturing debt. While oil, gas, and chemicals sectors are expected to rebound, non-oil sectors may see slower growth. Infrastructure initiatives are anticipated to accelerate post-COP28, supporting debt refinancing.

GCC infrastructure assets are predicted to maintain resilience due to long-term concessions, mitigating market risks. Over 95% of outlooks on rated GCC firms remain stable, indicating limited rating improvements. However, companies in cyclical sectors facing leverage pressures and those heavily reliant on investor confidence amid geopolitical risks may experience rating challenges.

Source : www.zawya.com