Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative

Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative
Published Aug 28, 2019
7 pages (2864 words) — Published Aug 28, 2019
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect Damac Real Estate Development Ltd.'s (Damac's) credit metrics will weaken over the next two years as residential real estate prices in Dubai decline. We are therefore lowering to 'B+' from 'BB-' our ratings on Damac and on its two sukuk trust certificates. The negative outlook reflects our view that Dubai's residential real estate market conditions will remain weak, and that this could lead to a significant reduction in Damac's new sales and margins. We lowered the rating because we expect Damac Real Estate Development's (Damac's) credit metrics will weaken over the next two years as residential real estate prices in Dubai decline. In our view, this may lead to a reduction in Damac's new sales, operating margins, and

  
Brief Excerpt:

...- We expect Damac Real Estate Development Ltd.'s (Damac's) credit metrics will weaken over the next two years as residential real estate prices in Dubai decline. - We are therefore lowering to 'B+' from '##-' our ratings on Damac and on its two sukuk trust certificates. - The negative outlook reflects our view that Dubai's residential real estate market conditions will remain weak, and that this could lead to a significant reduction in Damac's new sales and margins....

  
Report Type:

Research Update

Issuer
Damac Real Estate Development Ltd.
Sector
Global Issuers, Structured Finance
Country
United Arab Emirates
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative" Aug 28, 2019. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dubai-Based-Damac-Real-Estate-Development-Downgraded-To-B-On-Weak-Market-Prospects-Outlook-Negative-2309904>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Dubai-Based Damac Real Estate Development Downgraded To 'B+' On Weak Market Prospects; Outlook Negative Aug 28, 2019. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Dubai-Based-Damac-Real-Estate-Development-Downgraded-To-B-On-Weak-Market-Prospects-Outlook-Negative-2309904>
  
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