Standard & Poor's raised its long-term corporate credit rating on Dubai -based Emaar Properties to BBB- from BB+ on improving financial performance, the ratings agency said on Feb 5 . The outlook is stable. S&P also raised its senior unsecured debt rating on the USD 1bn trust certificates issued by Emaar to BBB- from BB+. " Emaar Properties' recurring income has increased on the back of the strong performance of its leasing and hospitality assets, and the company has presold a number of new residential developments in Dubai , which will support earnings over the coming two to three years," S&P said. Emaar's financial leverage has sharply declined due to strong operating cash generation and the conversion of USD 498mn of convertible notes into equity, S&P noted. The stable outlook reflects S&P's assessment of Emaar's recurring cash flow generation from leasing activities, the improving performance of its hospitality assets, and the build-up of a presold, high-margin development pipeline in Dubai .
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