S&P ups Emaar companies

S&P said it upgraded its issuer and issue ratings on Emaar Properties PJSC and Emaar Malls Management LLC to BBB- from BB+.

“Expected robust demand for Dubai residential real estate in 2022-2023 will sustain stronger credit metrics for Emaar Properties (the group). Emaar Properties' presales exceeded our expectations in 2021 and we expect they will remain very strong in 2022, with high collections continuing to provide uplift to operating cash flow. Notably, as one of the UAE's prime developers, the group stands to benefit from the promising forecast for Dubai residential real estate over 2022-2023. This follows positive momentum that began at year-end 2020 and continued into first-quarter 2022, with double-digit year-on-year price increases for apartments and villas,” the agency said in a press release.

S&P said it considers Emaar Malls as material and core to parent Emaar Properties, which would provide all necessary financial and operational support if needed after increasing ownership to 100%, leading to consider the credit quality of both companies as equal.

The outlook is stable on both companies.

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