Record high presales of UAE dirham (AED) 7.8 billion in 2021 and new project launches will support Damac's return to growth from 2022 after several years of revenue and EBITDA declines. We anticipate that Damac will repay $344 million outstanding on its sukuk, due in April, using its large unrestricted cash balances, while sustaining comfortable liquidity and a net cash position this year. We therefore raised our rating on Damac to 'B+' from 'B'. The positive outlook indicates that we could raise the rating by another notch in the coming six to 12 months if Damac demonstrates an improvement in its market position, including steady revenue growth and stronger profitability. The Positive outlook indicates the possibility of a one-notch upgrade
