UAE - Mubasher: Moody's Investors Service (Moody's) has affirmed Aldar Properties' (Aldar) Baa2 issuer ratings, with a stable outlook.

Affirming the rating reflects Aldar's solid credit metrics in 2020 despite the coronavirus (COVID-19) pandemic, according to a recent press release.

The global rating agency referred that the Abu Dhabi-based property developer had an adjusted gross debt to EBITDA of 3.6 times and an adjusted fixed charge coverage ratio of 8 times.

The company's performance is attributed to strong property development revenues with unit handovers and inventory sales, which reflects its market position in Abu Dhabi and a resilient buyer profile.

In 2021, Moody's expects adjusted gross debt to EBITDA of 3.5 times and an adjusted fixed charge coverage ratio of 8.1 times, with a slight recovery in rental income, but the downside risk exists if the spread of the COVID-19 is not contained.

In the meantime, the World Expo in October 2021 could help the tourism sector, which the pandemic hit amid the travel restrictions, to recover again and could increase hotel occupancy rates during the last quarter of 2021.

The stable outlook shows Moody's outlook that the company will be able to manage its property development risk while continuing to generate recurring cash flows in the current challenging operating environment.

It is noteworthy to mention that in the first quarter (Q1) of 2021, the company recorded an 80% year-on-year (YoY) surge in net profits during the first quarter (Q1) of 2021, logging AED 544 million.