Emaar Malls’ Issuer and Sukuk Ratings Remain Unaffected by Proposed Merger with Emaar Properties: Moody’s

Moody’s Investors Service (Moody’s) reports that United Arab Emirates-based Emaar Malls’ issuer and Sukuk ratings will remain unchanged by the proposed merger (via a share swap) with its parent, Emaar Properties. According to Moody’s, Emaar Malls has no intention of increasing its leverage from current levels or to enter any transaction to support Emaar Properties that would involve leveraging Emaar Malls’ balance sheet. Emaar Malls’ shareholders (excluding Emaar Properties), currently own 84.6% of Emaar Malls and will receive Emaar Properties shares in the ratio of 0.51:1, amounting to a premium of 7.1 % to Emaar Malls’ closing share price on the 1st of March 2021.

Why it matters?

Moody’s states that the...