Emaar S&P rating rests on govt deal
Standard & Poor's would look again at Emaar Properties credit rating if the developer's plans to swap land for shares with the Dubai government fall through, an analyst at the ratings agency said on Wednesday.
S&P assigned the real estate developer an "A-" rating in July.
Emaar said on March 19 it would give 2.364 billion new shares to Dubai Holding, owned by the emirate's ruler, in exchange for land. It has yet to give details of the agreement including the extent, location and value of land.
The deal could be concluded next month, Amit Jain, chief financial officer of Emaar Dubai, said on Tuesday, holding out the possibility that talks could collapse if the terms were not good for shareholders.
"In case the deal would not close, we would look at the reason why and see if that also would impact our view on the implicit support from the government factored into the ratings," S&P credit analyst Alf Stenqvist said.
"We have an ongoing surveillance of the rating and if the deal doesn't go through we would look at it again."Source
S&P assigned the real estate developer an "A-" rating in July.
Emaar said on March 19 it would give 2.364 billion new shares to Dubai Holding, owned by the emirate's ruler, in exchange for land. It has yet to give details of the agreement including the extent, location and value of land.
The deal could be concluded next month, Amit Jain, chief financial officer of Emaar Dubai, said on Tuesday, holding out the possibility that talks could collapse if the terms were not good for shareholders.
"In case the deal would not close, we would look at the reason why and see if that also would impact our view on the implicit support from the government factored into the ratings," S&P credit analyst Alf Stenqvist said.
"We have an ongoing surveillance of the rating and if the deal doesn't go through we would look at it again."Source
No comments:
Post a Comment