Kuwait-based United Real Estate Company (URC), a leading real estate developer, has announced that global credit rating agency Capital Intelligence upgraded URC’s KD60 million ($213 million) unsecured bond from BBB- with a positive outlook, to BBB with a stable outlook.

Capital Intelligence stated that the rating upgrade was reinforced by URC’s continuous improvement on its debt maturity profile, its track record of profitability, and the ongoing growth of its core earnings.

The rating also reflects the company’s well-established position in the market, its considerable and diverse portfolio of income generating assets, as well as its good rental growth stance, a statement said.

“The upgrade of our credit rating to ‘BBB’ and stable outlook is a reflection of the company’s success in achieving one of its main goals for the year, improving our operational performance,” said Mohammed Ahmed Al Saqqaf, URC’s chief executive officer.

“In addition, the sale of a number of our assets during 2013 eased our financial restrictions and was rationalized by our objective to hold income-generating assets in our portfolio.”

Capital Intelligence also noted that the URC’s debt maturity profile improved noticeably with the longer tenor of the bond.

The company’s debt service ability remains satisfactory based on its ability to refinance, as well as its demonstrated ability to make asset sales in the prevailing challenging real estate market conditions.

URC, which was founded in 1973, has a track record as a leading developer of commercial, residential, hospitality, and mixed-use properties in the Mena region. – TradeArabia News Service