S&P upgrades Emaar Properties, Emaar Malls with stable outlook

S&P upgrades Emaar Properties, Emaar Malls with stable outlook

Emaar Properties PJSC and Emaar Malls Management LLC have been upgraded to BBB- Outlook Stable by S&P Global after record property sales in 2021.

The ratings agency said leverage metrics improved faster than expected in 2021 and will likely continue in 2022-2023 because the group is using excess cash to repay its debt.

S&P highlighted Emaar Properties sales of AED 27.4 billion ($7.5 billion) amid rebounding demand for residential real estate.

“S&P view Emaar Malls Management LLC (Emaar Malls) as material and core to parent Emaar Properties, which would provide all necessary financial and operational support in case of need after increasing ownership to 100 percent, leading S&P to view the credit quality of both companies as equal,” the agency said.

The long-term issuer credit and issue ratings on Emaar Properties and Emaar Malls as well as their respective debt S&P were therefore raised to BBB- from 'BB+.

The research update from S&P said Emaar Properties’ presales exceeded their expectations in 2021, and that they were anticipated to remain very strong in 2022.

“Notably, as one of the UAE’s prime developers, the group stands to benefit from the promising forecast for Dubai residential real estate over 2022-2023,” the update said.

“This follows positive momentum that began at