Latest news with #SPGlobalRatings
Al Bawaba
11-06-2025
- Business
- Al Bawaba
S&P and Moody's Upgrade Emaar's Credit Ratings, Citing Strong Financial Performance and Robust Revenue Visibility
Emaar Properties PJSC (DFM: EMAAR), one of the world's most valuable and respected real estate development companies, has announced that both S&P Global Ratings and Moody's Ratings have upgraded the company's long-term issuer credit ratings, reinforcing Emaar's position as a financially resilient and strategically agile market leader. S&P Global Ratings upgraded its long-term issuer credit rating to BBB+ from BBB, with a stable outlook, while Moody's upgraded Emaar's long-term issuer rating to Baa1 from Baa2, also with a stable outlook. These upgrades reflect Emaar's robust financial fundamentals, consistent performance, and sound strategic direction. The same S&P and Moody's rating upgrade has been applied to Emaar's senior unsecured debt. Strong Financial Position and Strategic Execution As of March 2025, Emaar reported a revenue backlog of approximately AED 127 billion (US$ 34.6 billion), providing strong revenue and cash flow visibility through 2028. The company's recurring income portfolio continues to expand, supported by disciplined execution, resilient operations, and diversified income streams. S&P's upgrade was driven by Emaar's record-high backlog of AED 110 billion (US$ 29.9 billion) as of December 2024, and healthy presales in the UAE of AED 65.4 billion (US$ 17.8 billion) during 2024, alongside a net cash position, low leverage, and strong adjusted EBITDA margins. Moody's highlighted significant reduction in adjusted debt of Emaar from 2020 to March 2025 and the drop in debt to equity ratio over the same period. Commenting on the announcements, Mohamed Alabbar, Founder of Emaar, said: "We are proud to receive this recognition from both S&P and Moody's, which underscores the strength of our strategy, the quality of our assets, and the discipline we maintain in financial management. These upgrades reflect not only our performance, but also the confidence in Dubai's economy and real estate market. We will continue to pursue sustainable growth, innovation, and value creation for our shareholders and stakeholders alike." Liquidity and Resilience Emaar reported an interest coverage ratio of approximately 24 times for the twelve months ending March 2025 and holds AED 25.4 billion (US$ 6.9 billion) in cash (excluding escrow balances), along with AED 7.4 billion (US$ 2 billion) in undrawn committed credit facilities, providing ample liquidity and financial flexibility. S&P noted that Emaar's strong mall, hospitality, and entertainment operations, in addition to the resilience of its real estate development business, contributed to the rating action. Dubai Mall, for instance, recorded over 111 million visitors in 2024, with overall mall portfolio occupancy of 98.5%, showcasing the strength of Emaar's recurring income-generating assets. Outlook Both agencies issued a stable outlook, reflecting their expectation that Emaar will maintain solid credit metrics, strong liquidity, and continued operational performance. These dual upgrades reinforce Emaar's reputation as a leading player in the global real estate sector, anchored in a dynamic and fast-growing market.
CTV News
10-06-2025
- Business
- CTV News
Credit rating agency says Manitoba's recent tax changes outweigh affordability offers
Manitoba Finance Minister Adrien Sala speaks to media at a press conference before the provincial budget is read at the Manitoba Legislature in Winnipeg, Thursday, March 20, 2025. THE CANADIAN PRESS/John Woods WINNIPEG — The Manitoba government is expected to use more 'revenue levers,' similar to its recent income and property tax changes, as part of its plan to reduce the deficit, a credit-rating agency report says. S&P Global Ratings has affirmed the Manitoba government's existing short-term and long-term credit ratings and says the outlook for the province is stable, based in part on expected revenue changes and spending control. 'The stable outlook reflects our expectation that, despite economic growth and trade uncertainty, Manitoba will deploy revenue levers and expenditure management to generate stronger fiscal outcomes in the next two years,' the report, issued May 26, said. The NDP government, elected in 2023, has promised to reduce costs for Manitobans. It has taken out advertising to promote its cut to the provincial fuel tax, an increase to a tax credit for renters and other measures. But the money forgone by the province for those measures is outweighed by recent tax changes that are boosting provincial revenues, a director with S&P said. That includes a change in this year's budget that will no longer see income tax brackets automatically rise in line with inflation. 'That alone is enough to offset all the affordability measures that they're putting in,' Bhavini Patel, director in S&P's Canadian international public finance group, said in an interview. The NDP government has promised to balance the budget before the next election, slated for 2027. That would end a string of annual deficits that stretches back almost continuously to 2009, with the exception of two surpluses. Part of the province's revenue growth has come from recent changes that will see many property owners and income-earners pay more. In last year's budget, the government changed the way education tax credits on property are calculated. The government estimated the change would net the province an extra $148 million a year, although that number is likely to grow due to recent increases in property assessments and taxes levied by school divisions. In this year's budget, the government stopped indexing income tax brackets and the basic personal exemption to inflation. By keeping the brackets and exemption constant as wages increase, unlike most provinces, the government is forecasting an extra $82 million in revenue. Finance Minister Adrien Sala said he's not looking at future tax changes aimed at garnering more money, and is expecting an economic boost to increase revenue. 'I think the biggest driver of new revenues will be economic growth,' he said in an interview. He pointed to the recent start of construction of the Alamos gold mine near Lynn Lake as an example. The government is also looking at keeping annual spending growth in check in order to balance the budget, he said. This report by The Canadian Press was first published June 10, 2025. Steve Lambert, The Canadian Press
Bloomberg
06-06-2025
- Business
- Bloomberg
Poland's Fiscal Woes in Focus After Tusk Ally Loses Election
The defeat of Polish Prime Minister Donald Tusk's favored presidential candidate is shifting investor focus to the nation's troubling public finances, amid growing concerns about political stability. Fitch Ratings Inc. and S&P Global Ratings both warned on Wednesday that post-ballot politics may curb already-low appetite for reducing the fiscal deficit, which is set to top 6% of economic output for a second straight year.
News24
05-06-2025
- Business
- News24
OECD backs SARB push to lower SA's inflation target
For more financial news, go to the News24 Business front page. Lowering South Africa's inflation target would drive economic growth and international competitiveness, said the Organisation for Economic Cooperation and Development, echoing the country's central bank. 'Reduce the inflation target and consider reducing the band around it,' was one of the key recommendations in the OECD's 2025 survey of Africa's most industrialised economy, released Thursday in Johannesburg. 'Formalising the focus on keeping inflation near a 3% midpoint could better support economic growth,' it said. The comments come as the South African Reserve Bank and Treasury near completion of a long-running review of the 3%-to-6% goal, which has not changed since it was launched in 2000. The SARB has recently stepped up its public advocacy for lowering the goal, calling the current moment — with inflation running at 2.8% — an 'amazing' opportunity to make the move. It estimates aiming for 3% would lead to lead to lower interest rates in the longer term than otherwise and save the billions of dollars in debt-service payments over a decade. S&P Global Ratings separately said that lowering the target would be good for the economy. But the central bank says that it won't act without the support of Finance Minister Enoch Godongwana, in an implicit acknowledgment any such a move will carry political costs. It will likely be fiercely opposed by those arguing a lower target means higher borrowing costs, slower growth and fewer jobs, in a country where unemployment is above 30%. Godongwana told Bloomberg on Wednesday that he had not formed an opinion on the issue because the review had not yet delivered its recommendations. 'Once we get that report we will form an opinion and issue the appropriate statement,' he said, without saying when it would come. Last year he said that reducing the target was low on his list of priorities – a stance that private sector economists have noted, pointing to the government's plan to invest heavily in upgrading the country's infrastructure which could be at odds with a lower goal by spurring inflation. Still, the Paris-based OECD said South Africa's inflation target band is relatively high and wide. Its major trading partners and emerging market peers, including Brazil, China and India, all have lower targets averaging at around 3%. 'Given the low current and projected inflation over coming quarters, it seems an appropriate time to undertake the change,' it said, adding that the SARB's credibility would help keep inflation expectations well anchored. It also noted that South Africa had still not acted on a raft of recommendation from previous OECD reports, including slowing the increase in government debt, cutting corporate taxes, raising more revenue and privatising state-owned enterprises.
Yahoo
31-05-2025
- Business
- Yahoo
Varex Imaging Corporation (VREX) Downgraded by S&P as Regulatory Outlook Remains Cloudy
S&P Global Ratings has downgraded its ratings on Varex Imaging Corporation (NASDAQ:VREX) because it believes the stock is surrounded by high levels of unpredictability and weaker credit metrics. Tariff drama has been lingering for quite some time now, and with uncertainty around policy implementation by the U.S. administration, the firm believes Varex's profitability and sales are under serious threat. A technician in a lab coat inspecting an X-ray imaging component. The slashing of the rating from 'B+' to 'BB-' also considers the refinancing risk of the company stemming from near-term maturities. With short-term capital structure, external factors, including capital market conditions and geopolitical risk, push the company into a vulnerable state. This isn't the first time the company has exhibited such performance. The credit assessor now expects a leverage above the downside threshold of 3.5x, with a free operating cash flow (FOCF) to debt below 12% for FY2025, much in line with last year's benchmark. No relief from the medical segment either, as the demand remains subdued. Despite the approval of a $1.4 trillion government stimulus package, the Chinese government is taking initiatives to support local vendors, putting further pressure on Varex Imaging Corporation (NASDAQ:VREX)'s sales. However, due to the company's competitive position and new contracts, S&P has extended a stable rating outlook. While we acknowledge the potential of VREX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VREX and that has 100x upside potential, check out our report about the READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure. None.
