S&P Global Ratings affirmed its BB+ issuer credit rating on Dubai Investments Park Development Co. LLC, with a negative outlook.
The rating agency said that although the property company's parent, Dubai Investments PJSC, experienced an increase in financial leverage due to additional investments in real estate developments and the Emirates District Cooling L.L.C. buyout, the increase is temporary.
The ratings affirmation takes into account the expectation by S&P that the company could sell a stake in Emicool in 2019.
The negative outlook factors in S&P's expectation that there is at least a one-in-three chance that adjusted debt-to-EBITDA at Dubai Investments PJSC will remain above 4.0x in 2019, which could lead to a downgrade. The outlook also reflects the chances that the potential Emicool share sale could be delayed or that additional investments in its land monetization plan, together with a weaker Dubai real estate market, prevent a meaningful recovery in credit metrics in 2019.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.