S&P raises Damac Real Estate

S&P said it raised its ratings on Damac Real Estate Development Ltd. and its $332 million sukuk due next April to BB- from B+.

“We expect a stronger-than-2021 presales and revenue backlog for Damac in 2022 and therefore significantly improved revenue visibility for the next two to three years. After a record high United Arab Emirates (UAE) dirham (AED) 7.8 billion ($2.1 billion) of presales achieved in 2021, Damac will continue to benefit from the growth wave in Dubai's residential real estate sector that began at year-end 2020. Sales prices have picked up for the first time since a 2015 peak and continue to demonstrate positive dynamics,” S&P said in a press release.

The agency said it forecasts Damac’s EBITDA to hit $450 million to $500 million in 2023 compared to negative $110 million in 2021.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.