United Real Estate Company (URC), one of the MENA region’s leading real estate developers, announced today that Capital Intelligence, the international credit rating agency, upgraded URC’s KWD 60 million unsecured bond from ‘BBB-’ with a positive outlook, to ‘BBB’ with a stable outlook. Capital Intelligence stated that the rating upgrade was reinforced by URC’s continuous improvement on its debt maturity profile, its track record of profitability, and the ongoing growth of its core earnings. The rating also reflects the company’s well-established position in the market, its considerable and diverse portfolio of income generating assets, as well as its good rental growth stance.
URC’s Chief Executive Officer, Engineer Mohammed Ahmed Al Saqqaf said, “The upgrade of our credit rating to ‘BBB’ and stable outlook is a reflection of the company’s success in achieving one of its main goals for the year, improving our operational performance. In addition, the sale of a number of our assets during 2013 eased our financial restrictions and was rationalized by our objective to hold income-generating assets in our portfolio.”
URC, which was founded in 1973, has affirmed its position as a leading real estate developer with its 40 year track record of developing commercial, residential, hospitality, and mixed-use properties in the MENA region. The company was successful in achieving a substantial occupancy rate at one of its recently inaugurated and award-winning commercial project, Salalah Gardens Mall in Salalah, Oman.
Capital Intelligence also noted that the URC’s debt maturity profile improved noticeably with the longer tenor of the bond. The company’s debt service ability remains satisfactory based on its ability to refinance, as well as its demonstrated ability to make asset sales in the prevailing challenging real estate market conditions.
United Real Estate Company
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