Moody’s affirms Emaar Properties’ Baa3 ratings; changes outlook to stable from negative

Moody’s affirms Emaar Properties’ Baa3 ratings; changes outlook to stable from negative

Emaar had a total revenue backlog of Dh46 billion to be recognised over the next 3-4 years which offers strong revenue visibility.

Published: Tue 7 Jun 2022, 5:19 PM Last updated: Tue 7 Jun 2022, 5:22 PM

Moody’s Investors Service (Moody’s) affirmed Emaar Properties PJSC’s (Emaar or Emaar Properties) Baa3 long-term issuer rating on Tuesday. Moody’s has also affirmed the Baa3 ratings on the three backed senior unsecured sukuk due in 2026, 2029 and 2031 and the (P)Baa3 rating on the backed senior unsecured MTN programme issued by Emaar Sukuk Limited. The outlook on all ratings has been changed to stable from negative.

“The rating action is on the back of the strong financial performance that Emaar has been reporting over the past several quarters and is a reflection of the improved macro-economic prospects for the Emirate of Dubai as well as better operating conditions for the local real estate sector,” said Lahlou Meksaoui, vice-president-senior analyst at Moody’s.

The decision to change the outlook to stable from negative reflects Emaar’s strong operating performance supported by the improving macroeconomic outlook for the Emirate of Dubai. In 2021 and Q1 2022, Emaar’s property development business recorded robust revenue growth. This was due to the accelerated pace