Instead, the two companies are exploring joint venture arrangements to develop land in prime locations in Dubai.
Although the land-for-shares deal would probably have been beneficial for Emaar's credit quality, the key credit strengths supporting the rating on the company are expected to remain unchanged. These include its close relationship with and implicit support from the government of Dubai, its largest shareholder (32%) and its strong position in Dubai's rapidly growing property development market. Other credit strengths include high levels of pre-selling and progressive payments from customers (except in the U.S.), largely fixed contracts with contractors, low debt leverage, strong operating cash flows, and a land bank with market values well in excess of book values.
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Emaar Properties unaffected by cancellation of land-share swap with Dubai Holding, S&P says
- United Arab Emirates: Tuesday, August 28 - 2007 at 13:35
- PRESS RELEASE
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Standard & Poor's Ratings Services said today that its ratings and outlook on United Arab Emirates-based property developer Emaar Properties PJSC (A-/Stable/--) are unaffected by the announced cancellation of a land-for-shares swap transaction with Dubai Holding LLC.
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Posted by Anne-Birte Stensgaard, Senior News EditorTuesday, August 28 - 2007 at 13:35 UAE local time (GMT+4)
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About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
Alf Stenqvist, Stockholm
Mohammed Fayek, London
Media Contact:
Matthew McAdam, Communications
Tel: (44) 20-7176-3541
Standard & Poor's European Media Hotline
London +44 (0) 20 7176 3605
Paris: +33 1 44 20 6740
Frankfurt: +49 69 33999 225
Milan: +39 02 72 111 245
Madrid: +34 91 389 6944
Moscow: +7 495 783 4017
Stockholm: +46 8 440 5914
About Standard & Poor's in the Middle East
Standard & Poor's is the leading provider of financial market intelligence to customers in the Middle East's credit risk management, wealth management, and data and information markets. Since entering the region in the early 1990's, Standard & Poor's has become the largest provider of credit ratings in the G.C.C, rating more than 90 issuers. In equity markets, Shariah-compliant versions of Standard & Poor's global and regional equity market indices - S&P 500, S&P Europe 350, S&P Japan 500 and S&P/IFCI GCC - have created new opportunities for Islamic investors to benchmark their international investments and for asset managers to create new investment products serving the Islamic community. For further details on Standard & Poor's Middle East capabilities please visit www.middleeast.standardandpoors.com
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries. Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
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