Riyadh – Mubasher: Moody’s Investors Services has upgraded the outlook of Saudi Arabia-based Dar Al Arkan Real Estate Development Company (DAAR) to 'Positive' from 'Stable'.

The credit ratings agency also affirmed the company's B1 corporate family rating (CFR).

Moody’s ascribed the upgrade of the firm’s outlook to an improvement in its liquidity after growing to SAR 3.2 billion from SAR 582 million.

The Saudi real estate developer's revenues hit SAR 4.7 billion during the full-year 2017, compared to SAR 1.9 billion a year earlier.

"The decision to change the outlook to positive from stable reflects the company's improved financial position following a strong set of results in the second half of 2017," said Moody's assistant vice president and local market analyst for Dar Al Arkan Real Estate Development Company Lahlou Meksaoui.

Meksaoui added that the move also highlighted DAAR's disciplined approach in recent years of managing liquidity ahead of upcoming debt maturities.

While DAAR's B1 rating is boosted by the positive long-term fundamentals for the kingdom's real estate sector, including favorable demographics, growth in household formation and a housing deficit, Moody's said.