Moody’s assigns B1 rating to Emaar’s $2bn sukuk

The B1 rating reflects refinancing risks that Emaar is facing over the coming 18 months
There could be pressure to upgrade the B1 rating if Emaar establishes a solid track record in collection of cash for presold units and is able to sell property that it holds on its books
By Bloomberg
Tue 18 Jan 2011 11:54 PM

Emaar Properties, the developer of the world’s tallest tower in Dubai, had its $2bn Islamic bond assigned a “B1” rating at Moody’s Investors Service. The outlook is negative.

“The negative outlook reflects refinancing risks that Emaar is facing over the coming 18 months,” the rating agency said in an emailed statement on Tuesday.

“Moody’s would consider stabilising the outlook if Emaar either terms out some of its short-term debt or repays it. Upgrade pressure on the B1 rating could emerge if Emaar establishes a solid track record in the collection of cash for presold units and is able to sell property that it holds on its books.”

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