Abu Dhabi, UAE: Aldar Properties has said that it has successfully refinanced AED 1.8 billion of existing bank loans, due to mature by 2018. On a different note, the company informed that its long- and short-term corporate credit ratings have been upgraded by S&P Global Ratings from BBB-/A-3 in December 2014 to BBB/A-2, with a stable outlook.
The conclusion of the bank loan refinancing, the company said, reinforces the strength of its balance sheet, with the average debt maturity now extending to four years. It revealed that the interest-only loans were agreed with three local and international banks over five-, seven- and 10-year maturities.
According to Aldar, S&P noted that the company’s operating performance is improving, on the back of steady recurring income from its rental portfolio, which has strengthened its financial and business risk profile.
Commenting on the development, H.E. Mohamed Khalifa Al Mubarak, CEO of Aldar Properties, said: “This ratings action is another acknowledgement of our financial strength and the success we have enjoyed in building a mature and sustainable business. With a strong capital structure in place we remain well positioned, with a clear strategy that is focused on creating long-term value for our shareholders.”
