Moody’s ups Emaar Sukuk debt, rates Emaar Baa3

Moody's Investors Service said it assigned a Baa3 long-term issuer rating to Emaar Properties PJSC.

Concurrently, the agency upgraded the rating of the company's senior unsecured $2 billion trust certificate program established under Emaar Sukuk Ltd. to provisional Baa3 from provisional Ba1 and upgraded the ratings on Emaar Sukuk’s two $500 million senior unsecured sukuk issued under the program to Baa3 from Ba1.

The outlook on all ratings is stable.

"The upgrade of Emaar's ratings to investment grade is in recognition of its strong credit metrics and business resilience at a time when the macroeconomic environment remains weak," Moody's assistant vice president and analyst Rehan Akbar said in a news release.

"We believe that Emaar's market leadership position and balance sheet strength – in combination with stable recurring revenues and a sizeable property sales backlog – will support the company's credit profile during the currently challenging market conditions and as it enters a phase of elevated capex ahead of the Dubai World Expo 2020."

As part of this action, the agency withdrew Emaar's Ba1 corporate family rating and Ba1-PD probability of default rating, in line with the rating agency's policy for issuers migrating from non-investment-grade to investment-grade.

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