Dubai's Emaar Gets First Investment Grade in Four Years

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Emaar Properties received an investment grade rating for the first time in four years, seen as the latest sign of the Dubai property market recovery.

The builder of the world's tallest tower received a BBB-, the lowest invest grade, from Standard & Poor. S&P also said there's a stable outlook from BB+, Bloomberg reports.  

During the property market crash in Dubai, Emaar was cut to junk in December 2009.

"The rating action reflects the sound performance of Emaar's high-quality, Dubai-based leasing and hospitality assets, which constitute a large share of total earnings," S&P said. "The upgrade also incorporates Emaar's successful launch and presale of new high-margin developments in Dubai."

In December, consulting firm Cluttons reported sustainable growth in residential values in Emaar's Burj Khalifa. 

Dubai's property market is fast recovering and is poised to record the world's largest increase in home prices, according to Knight Frank. Market watchers predict home prices will grow by 35 to 40 percent this year.  

Emaar's new rating followed property pre-sales, increase in recurring income and after the developer converted bonds valued at $475.7 million into shares, according to Bloomberg. Included in Emaar's $2.5 billion of debt outstanding, it has a $500 million Islamic bond due in August 2016.