Dubai: Fitch, Moody’s and S&P upgrade Emaar Properties’ credit rating

The UAE’s largest property developer Emaar Properties on Tuesday said its credit rating was upgraded by the world’s top three rating agencies Fitch, Moody's, and S&P Global, reflecting its strong financial performance and improved leverage ratios.

Fitch upgraded Emaar Properties Long-Term Issuer Default Rating to 'BBB' from 'BBB-, with a stable outlook. Moody's similarly upgraded the Dubai-based developer’s long-term issuer rating to Baa2 from Baa3 with a stable outlook. While S&P Global also revised upward Emaar's rating to 'BBB' from ‘BBB-’ with a stable outlook, signalling confidence in Emaar's financial stability and prospects.

The upgrade follows Emaar announcing Dh9.2 billion in property sales in the first quarter, marking an 11 per cent increase compared to Q1 2022.

Emaar's property sales backlog rose to Dh55.7 billion, providing a healthy revenue pipeline. An additional highlight was the 11 per cent rise in recurring revenue in Q1 2023, buoyed by increased tenant sales and a resurgence in tourism activity.

Emaar also declared and paid dividends of Dh2.2 billion, demonstrating its commitment to delivering shareholder value.

It has a land bank of 1.7 billion sq. ft. in the UAE and key international markets.

With a proven track record in delivery, Emaar has delivered over 94,000 residential units in Dubai and other global markets since 2002.

Today, 37 per cent of Emaar’s revenue is from its shopping malls and retail, hospitality and leisure and international subsidiaries.

• Business