Fitch, Moody’s, S&P upgrade Emaar’s credit ratings

Fitch, Moody’s, S&P upgrade Emaar’s credit ratings

Dubai developer Emaar Properties has announced that leading ratings agencies - Fitch, Moody's and S&P Global - have upgraded its credit ratings, thus reflecting its strong financial performance and improved leverage ratios. Fitch has upgraded Emaar Properties Long-Term Issuer Default Rating to 'BBB' from 'BBB-, with a Stable Outlook. Moody's has similarly upgraded Emaar's long-term issuer rating to Baa2 from Baa3 with a Stable Outlook, while S&P Global has also upgraded Emaar Properties 'BBB' from ‘BBB-,‘ the rating comes with a Stable Outlook, signalling confidence in Emaar's financial stability and prospects, it added. According to Emaar, the robust Q1 2023 results clearly echo these ratings upgrades. The Emirati developer had reported group property sales of AED 9.2 billion ($2.5 billion) in the first quarter, marking an 11% increase compared to Q1 2022. Emaar's property sales backlog further rose to AED 55.7 billion ($15.2 billion), providing healthy revenue pipeline. An additional highlight was the 11% rise in recurring revenue in Q1 2023, buoyed by increased tenant sales and a resurgence in tourism activity. The stellar Q1 2023 performance resulted in a 26% increase in EBITDA and a 43% rise in net profit compared to Q1 2022 showcasing the company's operational excellence