Moody’s affirms Aldar Investment Properties’ rating on expanding diversified portfolio – The National

Moody’s affirms Aldar Investment Properties’ rating on expanding diversified portfolio – The National

Moody's Investors Service affirmed Aldar Investment Properties' Baa1 ratings, the highest credit rating for a non-government company in the region, on the back of its expanding portfolio of diversified investment properties.

The rating agency also assigned a Baa3 rating to Aldar Investments Hybrid, which is issuing proposed $500 million subordinated perpetual notes that will be guaranteed by Aldar Investment Properties, Moody’s said in a statement on Tuesday.

"The proposed hybrid will support Aldar Investment Properties’ strategy to grow its investment property portfolio, while diversifying funding sources and maintaining prudent financial policies,” said Lahlou Meksaoui, a vice president at Moody's.

“It demonstrates its good access to capital with Apollo Global Management as a strategic partner."

The issuance of hybrid notes is part of several other transactions with Apollo Global Management, and these proceeds will “primarily be used for the acquisition of income generating assets in Abu Dhabi and the rest of the UAE in 2022”, the ratings agency said.

In February, Apollo, one of the world’s largest alternative investment managers, agreed to invest $1.4 billion through some of its funds and clients in Aldar Properties. The deal represents one of the largest foreign direct investments in Abu Dhabi’s private sector.

The investment allocates $500m to a