S&P cuts Aldar Properties

Standard & Poor's said it lowered the long-term corporate credit rating on Aldar Properties PJSC to B from BB-, and placed the B long-term and B short-term ratings on CreditWatch with negative implications.

The downgrade reflects a view of the challenging real estate market conditions in Abu Dhabi and the reliance of Aldar's future earnings and cash flow on continued demand for both the sale and rental of property and land, S&P said.

New sales of residential units and land are extremely slow, the agency said, and delays in handover hurt the company's earnings and cash flow in the first nine months of 2010.

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