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Thu 6 Feb 2014 12:26 PM

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Dubai’s Emaar surges to 65-mth high on ratings boost

The developer regained an investment-grade credit rating on Wednesday for the first time since 2009

Dubai’s Emaar surges to 65-mth high on ratings boost
(AFP/Getty Images)

Shares in Emaar Properties surge to their highest level in 65 months after the company regained an investment-grade credit rating on Wednesday for the first time since 2009.

Standard and Poor's raised its long-term rating of Emaar to BBB-minus, the lowest investment grade, from BB-plus.

"The credit story is catching up with the equity story," says Sanyalaksna Manibhandu, senior analyst at NBAD Securities.

Shares in Emaar rise 5.9 percent to AED8.4, the highest intra-day price since September 2008.

Manibhandu said the credit rating would help Emaar secure financing at a cheaper price than before, aiding its profit.

"Equity analysts will be more willing to re-rate Emaar, but we already knew the company manages its finances well - by making sure that it has enough financing before they launch their projects."

NBAD Securities has a price target of AED9.65.

Dubai's benchmark rises 2.0 percent to 3,950 points, a new five-year high.

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