Fitch Raises Binghatti Holding’s Credit Rating to BB- as Dubai Developer Plans $27.2B Projects
Fitch Ratings has raised the rating of Dubai real estate developer Binghatti Holding. On Monday, they upgraded the company’s Long-Term Issuer Default Rating (IDR) and senior unsecured debt from B+ to BB-, with a stable outlook.
Credit upgrades
Fitch said it upgraded Binghatti’s credit rating because the company keeps improving its performance. This is helped by strong demand for its homes, a good market position, and strong brand recognition. Fitch also mentioned that Binghatti’s sales stayed strong all year. Their luxury projects attract international buyers, while their mid-rise buildings and other developments are selling as expected.
Fitch believes that because of these strong sales, Binghatti will have enough money to pay for current and future projects using its own cash, as long as it doesn’t buy too much new land.
“Our financial strength in this competitive market shows our dedication to delivering high-quality, unique luxury real estate,” said Muhammad BinGhatti, Chairman of Binghatti Holding, in a statement on Tuesday.
This upgrade follows Binghatti’s first-ever credit rating from Moody’s in March. Moody’s gave the company a Ba3 rating with a ‘Stable Outlook’.
Growth plans
In October, Dubai-based Binghatti announced plans to grow its project portfolio to $27.2 billion (AED 100 billion) within 18 months.
Chairman BinGhatti also said the company will launch 12,000 new units in the next three months. This will be supported by cash from projects worth over $1 billion (AED 3.7 billion), which will be completed during the same period.
He also mentioned that Binghatti is buying more land in key Dubai areas like Palm Jumeirah, Business Bay, and Al Jaddaf. These investments are to prepare for the high demand expected over the next two and a half years.
Published: 19th March 2025
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