Binghatti Holding, a leading UAE luxury real estate developer, has announced that Moody’s Ratings has assigned a first-time Ba3 corporate family rating (CFR) and Ba3-PD probability of default rating to the company. 

 

Binghatti has also been assigned a stable outlook by Moody’s.

 

The rating agency’s Ba3 rating underscores several key strengths of Binghatti's operations, reflecting its strong market position in Dubai’s real estate sector, effective backward integration, and excellent financial health, the company said.

 

Moody’s Rating highlighted Binghatti’s strategic control over development processes, from project execution to cost management, which enhances operational efficiency and contributes to solid profit margins. The company produced a record net profit of AED1.83 billion ($498 million) in 2024, a 152% year-on-year jump, as well as a 182% increase in its revenue backlog to about AED10 billion as of December 31, 2024.

 

In its report, Moody’s also highlighted the company’s strong credit metrics, which are characterised by low financial leverage, solid interest coverage, and healthy liquidity levels. Binghatti has no material debt maturities until 2027, providing it with the financial flexibility to support key strategic growth initiatives, including high-end, branded real estate collaborations featuring luxury brands Mercedes Benz, Bugatti and Jacob & Co. 

 

Meanwhile, Moody's stable outlook reflects the company’s ongoing execution of its residential real estate projects amid strong demand for Dubai property. The company launched 16 new projects in 2024, bringing 11,750 units to the market. Binghatti has also acquired 13 million sq ft of prime development land in Dubai, with an estimated future development value of more than AED26 billion.

 

Chairman of Binghatti Holding, Muhammad Binghatti, commented: "We are proud to receive the robust first-time Ba3 rating from Moody’s, which reflects our strong financial performance, strong business model, and commitment to disciplined financial management. The new rating underscores our market leadership in Dubai’s luxury real estate sector and our ability to maintain strong credit metrics and good liquidity as we continue to make strong progress in executing our ambitious growth strategy."

 

Katralnada A Binghatti, CEO, added: "Binghatti will remain focused on strategic initiatives that enhance the company’s financial strength and positions it for long-term success. The commitment to transparency and prudent financial management highlighted by Moody’s Ratings will continue to guide our operations. With the recent acquisition of 13 million sq ft of prime development land in Dubai, Binghatti is confident in its ability to generate sustainable growth."

 

The company’s $500 million sukuk is listed on the London Stock Exchange and Nasdaq Dubai.  -TradeArabia News Service