Emaar sukuk rated B1 by Moody's

Moody's Investors Service on Tuesday assigned B1 rating to the $2billion sukuk issued by Emaar Sukuk Limited.

An official release said the outlook for the sukuk issued by the special-purpose vehicle of Emaar Properties PJSC was termed as "negative".

Moody's considers the sukuk, which follows the structure of an "Ijarah" transaction, as a senior unsecured obligation.

The statement said the rating agency's assessment was based on the ultimate obligation of Emaar to ensure that the pre-determined periodic distribution amount is always maintained; and the existence of a purchase undertaking which implies that certificate holders ultimately rely on the creditworthiness of Emaar for repayment when the trust is dissolved.