Summary: Damac Real Estate Development Ltd.

All revenues from development activities, which tend to be cyclical and volatile. Strong focus on Dubai and its volatile property market, which may come under pressure in 2015. Significant concentration risks in two master development projects. Good asset quality. Strong credit ratios backed by a well-balanced capital structure. Positive free operating cash flow. No annual dividends to be paid in 2015. Standard&Poor's Ratings Services' stable outlook on Dubai-based residential property developer Damac Real Estate Development Ltd. (Damac) reflects its opinion that the company's credit metrics will be able to withstand the potential softening of Dubai's residential real estate prices in the next 12-18 months. We believe that Damac should continue to benefit from a high level of advance

...Outlook: Stable Standard & Poor's Ratings Services' stable outlook on Dubai-based residential property developer Damac Real Estate Development Ltd. (Damac) reflects its opinion that the company's credit metrics will be able to withstand the potential softening of Dubai's residential real estate prices in the next 12-18 months. We believe that Damac should continue to benefit from a high level of advance payments from customers of presold developments, helping to offset to some extent its working capital expansion over the next 12-18 months. We believe that the company is likely to maintain an FFO-to-debt ratio exceeding 60% and a debt-to-EBITDA ratio of less than 1.5x, which could moderate the high volatility of operating cash flows....

Summary