Dubai – Mubasher: Moody's Investors Service affirmed Emaar Properties' long-term issuer rating at 'Baa3' and changed the rating outlook from stable to negative.

Moody's affirmed 'Baa3' ratings on the two Sukuk issuances due in 2026 and 2029, according to a press release on Thursday.

Changing the rating outlook to negative highlights that the coronavirus (COVID-19) pandemic will slow down Dubai's economic growth, namely in main sectors, including trade, transport, real estate, and tourism.

Therefore, the rating agency forecast that Dubai will witnesses slower GDP growth and a deterioration in the government's fiscal strength due to rising debt levels.

Emaar Properties' Baa3 ratings showed the company's solid business foundation and maintained a conservative financial profile due to the accumulated substantial property sales and strong liquidity profile.

On the other hand, Moody's explained that Emaar Properties' hospitality business will be negatively affected by a lower number of tourists and travel restrictions.