Fitch rates Qatar Real Estate BBB+

Fitch Ratings said it assigned Qatar Real Estate Investment Co. QSC, or Alaqari, a long-term issuer default rating of BBB+ and a short-term issuer default rating of F2.

The outlook for the long-term issuer default rating is stable.

The ratings reflect Alaqaria's position as a leading developer of long-term rental housing projects for state and corporate entities in Qatar and the company's history of strong profitability, steady and visible income flow, low level of speculative building, strong forward order book and moderate financial profile, Fitch said.

The ratings are further supported by Alaqaria's de facto quasi-monopolistic position within the industrial housing subsector, the company's minimal land risk, its low occupancy risk in its projects and low counter-party risk.

The agency said the ratings also consider Alaqaria's significant customer concentration, its exposure to occupancy and counterparty risk on the speculative portion of its portfolio and to construction risk and Fitch's concerns about undercapitalization in view of the large forward order book and the associated increase in future funding requirements.

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