S&P: Emaar unchanged

Standard & Poor's said its ratings and outlook on Emaar Properties PJSC (A-/stable) are unaffected by the announced cancellation of a land-for-shares swap transaction with Dubai Holding LLC.

Instead, the two companies are exploring joint venture arrangements to develop land in prime locations in Dubai, according to S&P, which added that although the land-for-shares deal would probably have been beneficial for Emaar's credit quality, the key credit strengths supporting the rating on the company are expected to remain unchanged.

These include its close relationship with and implicit support from the government of Dubai, its largest shareholder (32%) and its strong position in Dubai's rapidly growing property development market, the agency noted.

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