S&P trims Damac Real Estate

S&P said it lowered the rating for Damac Real Estate Development Ltd. and the two sukuk trust certificates to B+ from BB-.

The agency sees Damac’s credit metrics weakening over the next two years as residential prices in Dubai fall.

“We expect the Dubai residential real estate market will remain weak in 2019 and 2020, reaching levels seen at the bottom of the last cycle in 2010. While we expect prices will stabilize thereafter, we don't anticipate a meaningful recovery in 2021,” said S&P in a press release.

The outlook is negative.

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