Moody's changes Emaar Properties' outlook to stable from negative. Emaar had a total revenue backlog of Dh46 billion to be recognised over the next 3-4 years.
Event Location
Dubai, Dubai
Start Time
08 June 2022, 12:00 AM
End Time
30 June 2022, 12:00 AM
Moody’s affirmed Emaar Properties PJSC’s (Emaar or Emaar Properties) Baa3 long-term issuer rating on Tuesday. Moody’s has also affirmed the Baa3 ratings on the three backed senior unsecured sukuk due in 2026, 2029 and 2031 and the (P)Baa3 rating on the backed senior unsecured MTN programme issued by Emaar Sukuk Limited. The outlook on all ratings has been changed to stable from negative.
The decision to change the outlook to stable from negative reflects Emaar’s strong operating performance supported by the improving macroeconomic outlook for the Emirate of Dubai.
Lahlou Meksaoui, vice-president-senior analyst at Moody’s said, “The rating action is on the back of the strong financial performance that Emaar has been reporting over the past several quarters and is a reflection of the improved macro-economic prospects for the Emirate of Dubai as well as better operating conditions for the local real estate sector.”
In 2021 and Q1 2022, Emaar’s property development business recorded robust revenue growth. This was due to the accelerated pace of construction and unit handover which led to high revenue recognition, as well as off-plan sales stemming from existing development projects and new launches
As of December 31, 2021, Emaar had a total revenue backlog of Dh46 billion to be recognised over the next 3-4 years which offers strong revenue visibility. This strong operating performance is supported by a positive market sentiment resulting in solid demand from local and international investors. Successful vaccination campaign, limited travel restrictions and tourist inflows particularly during Expo Dubai 2020 supported international demand.
Moody's Emaar Properties ratings
