Wednesday 15 July 2020

MIDEAST DEBT-Real estate giant's downgrade may increase #Dubai financing cost - Reuters

MIDEAST DEBT-Real estate giant's downgrade may increase Dubai financing cost - Reuters:

A downgrade last week of Dubai’s flagship real estate company will likely push up the emirate’s borrowing costs if it decides to refinance $750 million in bonds due in October, bankers and analysts said.

The credit ratings of government-related entities are often seen by investors as a proxy for Dubai, which is not rated by any of the major ratings agencies.

S&P Global Ratings downgraded Emaar Properties, builder of the world’s tallest building, Dubai’s Burj Khalifa, to a BB+ “junk” rating from an investment grade BBB- score, saying it expected a 30%-40% slump in the firm’s earnings this year.

Emaar Malls and DIFC Investments, a unit of the company running Dubai International Financial Centre, the Middle East’s major finance hub, also saw the same rating actions.

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