S&P ups UAE-Based Aldar Properties to 'B+'

S&P ups UAE-Based Aldar Properties to 'B+'

Standard & Poor's Ratings Services raised its long-term corporate credit rating on Abu Dhabi-based property company Aldar Properties PJSC (Aldar) to 'B+' from 'B'

April 18, 2012 9:37 by kippreport

On April 17, 2012, Standard & Poor’s Ratings Services raised its long-term corporate credit rating onAbu Dhabi-based property company Aldar Properties PJSC (Aldar) to ‘B+’ from ‘B’. At the same time, we affirmed the short-term corporate credit rating at ‘B’. The following are comments made by S&P about the upgrade:

The outlook is stable.

Abu Dhabi-based property company Aldar Properties PJSC’s (Aldar’s) liquidity position has been strengthened by a new AED4 billion revolving credit facility that it has entered into with National Bank of Abu Dhabi.

We are therefore raising our long-term rating on Aldar and the issue rating on its senior unsecured notes and sukuk to ‘B+’ from ‘B’.

We continue to incorporate two notches of uplift over the stand-alone credit profile, reflecting our view of the moderately high likelihood of extraordinary government support.

The stable outlook reflects our expectation that the government will continue to support Aldar, enabling it to maintain adequate liquidity and stabilize its operating cash flow generation over the next two to three years.