S&P lifts Emaar Properties

Standard & Poor's said it raised the long-term corporate credit rating on Emaar Properties PJSC to BBB- from BB+.

The agency also said it raised the senior unsecured debt rating on the $1 billion trust certificates issued by Emaar to BBB- from BB+.

Based on the agency's methodology, S&P said it continues to rate the debt at the same level as the corporate credit rating given that 47% of investment properties and fixed assets are encumbered.

S&P also said it withdrew the 3 recovery rating on Emaar's senior unsecured notes because its recovery rating methodology does not apply if the rating on the issuer at the investment-grade level.

The outlook is stable.

The upgrades reflect the sound performance of Emaar's high-quality, Dubai-based leasing and hospitality assets, which constitute a large share of total earnings, the agency said.

The ratings also consider Emaar's successful launch and presale of new high-margin developments in Dubai, S&P said.

Rating constraints include the company's high exposure to the cyclical and capital-intensive property development industry, which is somewhat mitigated by Emaar's presale strategy, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.