Aldar Properties’ long and short-term corporate credit ratings have been upgraded by S&P Global Ratings to BBB/A-2 with a stable outlook after the developer refinanced AED1.8 billion ($490 million) of existing bank loans due to mature by 2018.
Aldar said the conclusion of the bank loan refinancing reinforces the strength of Aldar’s balance sheet with the average debt maturity now extending to four years.
The interest only loans were agreed with three local and international banks over five, seven and ten year maturities.
Aldar said in a statement that its ability to secure interest only bank loans with maturities of up to 10 years at highly competitive commercial terms underlines its “robust performance, clear strategy and future prospects”.
S&P upgraded the developer’s long-term and short-term corporate credit ratings by one notch from BBB-/A-3 to BBB/A-2. The ratings firm noted that Aldar’s operating performance is improving, on the back of steady recurring income from its rental portfolio, which has strengthened its financial and business risk profile.
Aldar’s credit rating was previously upgraded to investment grade (BBB-/A-3) by S&P in December 2014.
Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said: “This ratings action is another acknowledgement of our financial strength and the success we have enjoyed in building a mature and sustainable business.
“With a strong capital structure in place we remain well positioned, with a clear strategy that is focused on creating long-term value for our shareholders.”
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