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S&P upgrades Aldar Properties ratings

Despite the positive news, a difficult month throughout GCC markets led to Aldar Properties dropping 10 per cent at the ADX today

Abu Dhabi-based developer Aldar Properties has been awarded a fresh upgrade to its ratings by agency Standard and Poor’s (S&P).

Following a similar move last month by Moody’s, S&P has upgraded Aldar’s ratings to BBB-/A-3 from BB+/B following the increase in retail income and successful launch of Yas Mall; the builder’s flagship asset.

Aldar’s CEO Mohammed Al Mubarak welcomed the move by telling reporters: “I am very pleased that once again Aldar’s financial strength has been acknowledged by the market. This upgrade from S&P reinforces Aldar’s strategy and the benefits that deleveraging and recurring revenue growth can bring to our business. As Abu Dhabi’s largest developer it is important that we act quickly and efficiently to deliver product to market and our financial strength is an important element of our growth story,” according to Arabian Business.

Following the upgrade, S&P announced: “The company’s growing share of recurring rental income in its total revenue base and its more cautious approach towards development activities should translate into sustainably stable credit metrics.”

Another key contributor to the upgrade has been the recent support Aldar has received from the Abu Dhabi government, such as material cost infrastructure reimbursements.

Despite the positive news, a difficult month throughout GCC markets led to Aldar Properties dropping 10 per cent at the Abu Dhabi Securities Exchange today (December 16).