IslamicFinance.de

Standard & Poor's downgraded Qatari real estate developer Ezdan Holding on Monday. Therefore, yields on the company's $500 million sukuk jumped by about 2 percentage points after the downgrade. S&P cut the Qatari company by two notches to BB from BBB-minus and revised its outlook to negative from stable. The rating agency cited a weakening of the company's financial risk profile partly caused by the neighbouring Arab countries' boycott of Qatar. Ezdan's sukuk, issued in 2016, were yielding around 6% last week, now the yield has surged to over 8%. The sanctions have worsened a slump in Qatar's real estate market. Housing and utility prices sank 4.7% from a year ago in September, their biggest drop for at least several years, and fell 0.7% from the previous month.