S&P boosts Emaar, Emaar Malls

S&P said it raised its ratings on Emaar Properties, its subsidiary Emaar Malls Management LLC and its $750 million sukuk due 2024 to BBB from BBB-.

“Dubai's domestic real estate sector is experiencing strong demand and improved pricing, which will help Emaar Properties sustain stronger credit metrics. At the end of March 2023, Emaar Properties' leverage (on a net basis) further dropped to 0.7x, the lowest level achieved since 2017. S&P Global Ratings expects low leverage to be sustained in 2023-2024, with adjusted debt to EBITDA remaining at 0.5x-1x. Emaar Properties is benefiting from positive real estate trends in Dubai, where it is by far the largest developer, successfully capitalizing on its solid reputation, having delivered over 60,000 units over its history,” the agency said in a press release.

Because the agency considers Emaar Malls a key subsidiary, it said it aligns the issuer’s ratings with the parent.

The outlook is stable.

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