Dubai Investments unit's rating upgraded to ‘BB+’

Dubai Investments Park Development Company (DIPDC), a wholly-owned subsidiary of Dubai Investments, has announced that its long-term corporate credit rating has been upgraded to “BB+” from “BB” by Standard & Poor’s Ratings Services with a Stable Outlook on the basis of stronger liquidity, the company said in a statement.

The DIPDC rating upgrade follows the Dh1.1 billion five-year sukuk issued by its subsidiary DIP Sukuk Ltd in February 2014, which  strengthened the group’s liquidity.

S&P also raised the Sukuk issue ratings from “BB” to “BB+”.

Spread across an area of 23 square kilometers, Dubai Investments Park is a self-contained mixed-use industrial, commercial and residential complex operated by DIPDC.

Khalid Kalban, Chairman of DIPDC and MD & CEO of Dubai Investments, said: “The upgrade in the ratings by Standard & Poor’s is a major endorsement for DIPDC and reflects the improved liquidity within the DI group, following the successful Sukuk issue earlier this year and our strong growth potential.”

He said: “As a benchmark rating, this positions us well to take advantage of favourable market conditions, with a view to enhance our overall shareholder value.”

This S&P Stable Outlook is based on its expectations of growing earnings from the company’s property rental portfolio with long-term leases.

The ratings report highlighted the key strengths of DIP, especially its strategic location and high occupancy across industrial and warehouse spaces.
Listed on Dubai Financial Market, Dubai Investments shares dropped nearly three per cent to Dh2.96 on Thursday.
 

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