Fitch lowers Emirates REIT

Fitch Ratings said it downgraded Emirates REIT's long-term issuer default rating to BB from BB+. The outlook remains stable.

Fitch also downgraded the sukuk trust certificates, issued through Emirates REIT Sukuk Ltd., to BB in line with Emirates REIT's issuer default rating.

The agency said the downgrade reflects the property company being unable to achieve Fitch's base case, which had been predicated on steady de-leveraging and increasing occupancy.

“Long delays in infrastructure development by the Dubai International Financial Centre (DIFC) that will improve access to the index tower – the company's largest asset – combined with a school operator default and a stagnating economy in Dubai, have slowed expected growth in profitability,” the agency said in a news release.

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