Abu Dhabi property developer Aldar Properties PJSC assigned 'A-/A-2' ratings; outlook stable

"The ratings reflect the company's strong position in the rapidly growing Abu Dhabi property development market.

They also reflect its large land bank, close relationship with the government, and growing investment property portfolio," said Standard & Poor's credit analyst Alf Stenqvist.

Constraining rating factors include huge funding needs for project development, high debt levels, the risk of a softening real estate market in Abu Dhabi over the longer term, and the company's limited operating history.

In addition, the ratings reflect our expectation of strong support from the government of the emirate of Abu Dhabi (AA/Stable/A-1+), reflecting its involvement in Aldar and the company's importance to the government's strategy of diversifying the economy. Accordingly, the long-term rating includes a three-notch uplift from the standalone assessment of 'BBB-'.

Aldar is the largest property developer in Abu Dhabi in terms of land bank.

The company started its operations in 2005 and large planned projects are still in the early phase.

Aldar benefits from high demand for property in Abu Dhabi, supported by the emirate's rapid economic growth and historical undersupply.

The stable outlook reflects our expectations that Aldar will continue to play an important role in real estate development in Abu Dhabi, and will continue to have material government ownership, factors which are likely to result in continuing government support.