Fitch revises Cenomi Centers outlook to ‘Stable’, holds rating at ‘BB’

Cenomi Centers said the rating action reflects the strength of its financial position, disciplined execution and resilient operating performance following the successful refinancing of its October 2026 sukuk, further strengthening its capital structure and supporting its long-term growth strategy.

Fitch said the company refinanced its $875 million sukuk due in October 2026 through the issuance of SAR 2.05 billion ($550 million) of new local sukuk maturing in 2031, in addition to a five-year $500 million international sukuk. The company also launched a tender offer and consent solicitation for the 2026 notes.

According to Fitch, Cenomi Centers fully redeemed its October 2026 sukuk by Q1 2026, reducing near-term refinancing risk, extending its debt maturity profile and strengthening liquidity management.

Cenomi Centers performance has seen little direct impact from the geopolitical tensions in the Middle East so far, with the company's portfolio remaining resilient in Q1 2026. Footfall increased, driven mainly by higher domestic consumption and domestic tourism following airspace disruptions.

Fitch expects Westfield Jeddah and Westfield Riyadh to strengthen the company's operating profile when they open in H2 2026. Pre-let occupancy reached 96% for Westfield Jeddah and 92% for Westfield Riyadh at end-Q1 2026.

Cenomi Centers property portfolio was valued at SAR 30.2 billion at end of Q1 2026 and comprises 20 shopping malls across Saudi Arabia's largest population centers. The two flagship projects in Jeddah and Riyadh will add approximately 104,000 sqm and 220,000 sqm of gross leasable area, respectively.

Fitch had downgraded the company's long-term issuer default rating and senior unsecured rating to 'BB' from 'BB+' in July 2025, while maintaining a Negative outlook, citing pressure from the company's development pipeline on its leverage metrics.