Fitch Ratings assigned Azizi Developments LLC a first-time BB- long-term issuer default rating, with a stable outlook.
The rating is based on the real estate developer's sustainable business model, which is focused on the Dubai residential market's affordable segment that enables it to reach a broader customer base, including end-user residents and investors.
Fitch also noted the Dubai-based company's improving operating profitability and favorable cash flow generation, thanks to its pre-sales model with an up-front and staged payment profile.
The company, however, operates in an oversupplied market and faces uncertain market and regulatory conditions, while having ample project concentration and high exposure to a single master developer in the United Arab Emirates, according to Fitch.
