S&P rates Emaar Properties certificates BBB-

S&P said it assigned a BBB- long-term rating to the 3.635% unsecured trust certificates due in 2026 issued by Emaar Sukuk Ltd.

Emaar Sukuk is affiliated with Emaar Properties PJSC, which acts as the obligor, S&P explained.

The rating on the trust certificates reflects the rating on Emaar Properties because the transaction fulfills the conditions of the agency’s criteria for rating sukuk, S&P said.

The agency said it equalized the rating on the trust certificates with that on Emaar Properties to consider a view that the instruments show limited structural subordination to the company's existing obligations.

Emaar Properties will use the proceeds of the issuance for general corporate purposes, S&P said.

The agency also said it doesn’t expect the issuance to cause the company's debt-leverage ratios to deviate from expectations for the corporate credit rating.

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