Aldar Properties PJSC, (ALDAR) the Abu Dhabi developer that was bailed out by the government last year, had its 2014 bonds rated buy at UBS AG on “marked improvement” in financial results and its proposed merger with a smaller rival.
“We believe the bonds do have room to tighten from here,” analysts Kathleen Middlemiss, Tatiana Boroditskaya and Emmy Al-Ghabra wrote in a note dated Aug. 10. “We also forecast continued deleveraging from the group and sustained cash flow which could also warrant an upgrade from the rating agencies.”
Aldar said last week second-quarter profit more than tripled to 418 million dirhams ($114 million) as revenue increased. The company, which received 36 billion dirhams in government support in 2011 after the emirate’s property market slumped, is exploring a merger with Sorouh Real Estate Co. (SOROUH) Talks, supported by Abu Dhabi’s government, may take months, the companies said in June.
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