Dubai-Mubasher: Emaar Properties made a "strong business" foundation in Dubai and maintained a conservative financial profile that will allow defend its investment-grade credit metrics, according to a report by Moody's Investors Service.

On 16 June, Moody’s upgraded Emaar Properties’ ratings to Baa3 with a stable outlook because the developer's business is believed to maintain its grade rating through the cycle despite expectation of continuous challenges in the Dubai’s real estate market during the next 12-18 months. 

"Emaar's credit metrics have improved significantly since the real estate market bottomed out in 2011 and despite ongoing volatility,” the report reported. 

The budget cuts by GCC governments introduced in 2016 will weigh on the pace of real estate market stabilization.

Emaar's liquidity position is robust, with unrestricted cash balances of AED 9.2 billion, as well as AED 9.6 billion of cash in escrow accounts and deposits, as at 31 March. 

Emaar successfully launched a number of residential projects, the report said that the developer generated AED 4.2 billion from Dubai property sales in the first quarter of 2016, compared to AED10.2 billion in 2015.