S&P and Moody's Upgrade Emaar's Credit Ratings, Citing Strong Financial Performance and Robust Revenue Visibility
DUBAI, UAE, June 11, 2025 /PRNewswire/ -- Emaar Properties PJSC (DFM: EMAAR), one of the world's most valuable and respected real estate development companies, has announced that both S&P Global Ratings and Moody's Ratings have upgraded the company's long-term issuer credit ratings, reinforcing Emaar's position as a financially resilient and strategically agile market leader.
Downtown Dubai
S&P Global Ratings upgraded its long-term issuer credit rating to BBB+ from BBB, while Moody's upgraded Emaar's long-term issuer rating to Baa1 from Baa2, both with stable outlooks. These upgrades reflect Emaar's robust financial fundamentals, consistent performance, and sound strategic direction.
The same S&P and Moody's rating upgrade has been applied to Emaar's senior unsecured debt.
As of March 2025, Emaar reported a revenue backlog of approximately US$ 34.6 billion, providing strong revenue and cash flow visibility through 2028. The company's recurring income portfolio continues to expand, supported by disciplined execution, resilient operations, and diversified income streams.
S&P's upgrade was driven by Emaar's record-high backlog of US$ 29.9 billion as of December 2024, and healthy presales in the UAE of US$ 17.8 billion during 2024, alongside a net cash position, low leverage, and strong adjusted EBITDA margins.
Moody's highlighted significant reduction in adjusted debt of Emaar from 2020 to March 2025 and the drop in debt-to-equity ratio over the same period.
Mohamed Alabbar, Founder of Emaar, said: "We are proud to receive this recognition from both S&P and Moody's, which underscores the strength of our strategy, the quality of our assets, and the discipline we maintain in financial management. These upgrades reflect not only our performance, but also the confidence in Dubai's economy and real estate market. We will continue to pursue sustainable growth, innovation, and value creation for our shareholders and stakeholders alike."
Emaar reported an interest coverage ratio of approximately 24 times for the year ending March 2025 and holds US$ 6.9 billion in cash (excluding escrow balances), along with US$ 2 billion in undrawn committed credit facilities, providing ample liquidity and financial flexibility.
S&P noted that Emaar's strong mall, hospitality, and entertainment operations, in addition to the resilience of its real estate development business, contributed to the rating action. Dubai Mall recorded over 111 million visitors in 2024, with overall mall portfolio occupancy of 98.5%.
These dual upgrades reinforce Emaar's reputation as a leading player in the global real estate sector.