DUBAI: Standard & Poor’s plans no rating action relating to Dubai’s Emaar Properties after the emirate’s largest listed developer announced plans to spin off its retail unit, an analyst covering the company said yesterday.
Emaar said on Saturday it planned to list 25 percent of its shopping malls and retailing unit in a public offer expected to raise around Dh8bn to Dh9bn.
The move, which would see cash distributed to shareholders through a special dividend but see Emaar’s main revenue stream of recent years divested, won’t impact Emaar’s rating, which was upgraded in February to investment grade.
“They are in a comfortable funding position at the moment, hence we are okay with the fact (that) not only did they increase the cash dividend but also they announced this potential stake sale,” Tommy Trask, director of corporate ratings at S&P, told a media event.Reuters
