The Dubai residential real estate market will likely weaken further in 2019 and 2020 because of oversupply. We expect this to result in weaker credit metrics for Damac Real Estate Development Ltd. We are therefore lowering our ratings on Damac to 'BB-' from 'BB'. The stable outlook stems from Damac's significant amount of presales and collections for key projects in Dubai, which we expect will sustain earnings and cash flow generation over the next two years, albeit at a much lower level than in the past. On Feb. 18, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Dubai-based Damac Real Estate Development Ltd. to 'BB-' from 'BB'. The outlook is stable. We also lowered our issue rating
