Details

 The real estate market is undoubtedly one of the most dynamic markets in the global scenario, and Al Mazaya Holding Company ensures that you remain updated about the latest developments and trends in the property market. We invite you to browse through our exhaustive media library to know more about global and regional markets so that you are in a position to make informed decisions when it comes to your property investments.

Capital Intelligence Ratings has assigned Al Mazaya Holding Company corporate ratings of ‘BBB-’ for the long-term and ‘A3’ in the short-term.

Al Mazaya Holding Company Assigned an Initial Corporate Rating of ‘BBB-’ Long-Term and ‘A3’ Short-Term with ‘Stable’ Outlook

“We operate according to a dynamic, stable business model that yields positive returns at acceptable levels of risks” – Ibrahim Al Soqabi, CEO


Capital Intelligence Ratings, the renowned international credit rating agency, has assigned Al Mazaya Holding Company corporate ratings of ‘BBB-’ for the long-term and ‘A3’ in the short-term.

In its initial report, the international agency indicated that the outlook on Al Mazaya Holding Company’s ratings is ‘Stable’. The ratings are supported by the Group’s well-diversified business model, its good liquidity backed by current high cash balances, and by its sound profitability. Further supporting the ratings is the long-term nature of the company’s funding structure and the sound EBIT finance charge coverage ratio. 

Commenting on the positive rating, Eng. Ibrahim Al Soqabi, Group CEO of Al Mazaya Holding Company, said: “Al Mazaya Holding boasts a resilient financial position that is nimble enough to  manage all the company’s short-term and long-term leverage. As such, the company is keen to fulfill the requirements of its investors and shareholders by bridging the information gap and providing them with seamless access to comprehensible, user-friendly and authentic data with regards to risk management. The ultimate goal is to build confidence and ensure transparency.”

He added: “The new positive rating should encourage investors and financial institutions to accelerate cooperation with Al Mazaya Holding and launch multifaceted investments and business entities.”

His statement served to underline the company’s tireless development efforts to operate according to a dynamic, stable business model that is likely to yield high returns at acceptable levels of risks and ultimately consolidate the company, positioning it for future growth.

Moreover, according to the report, the ratings are also backed by the diversification that the company has achieved within the asset base and in revenue streams. While revenue streams are real estate-related, they are diversified by geography, varying between develop-for-sale and rental properties. The report also highlighted the fairly comfortable debt to equity ratio and the fact that this debt has a largely medium-to-long maturity profile. The company’s short-term debt is fully covered by cash and other liquid assets at present.

In terms of non-financial factors, the report mentioned that the Group has a well-developed strategic plan and a very detailed multi-year business strategy that is subject to a quarterly review – the report is then updated if required. Moreover, there are clear policies and targets in place that include raising the proportion of income coming from rental activities, further diversifying the company’s portfolio in terms of geography or real estate and establishing a family of Al Mazaya Group brands.
The report lauded the company’s financial results for the year 2016, stating that the current year is a good one for the Group in terms of both net profit and cash generation – both categories are growing significantly, especially the cash balance from sales of completed units. The report also hailed the company’s falling leverage and rising rental income, noting that the expectation is for net profit attributable to shareholders to be maintained in 2017, with overall net profits predicted to rise in 2018.

clippings

  • Source-Alwassat

    Country - Kuwait

  • Source-Kuwait times

    Country - Kuwait

  • Source-Al Ittihad

    Country - Kuwait

  • Source-Alshahed

    Country - Kuwait

  • Source-Alsabah

    Country - Kuwait

  • Source-Arab Times

    Country - Kuwait

  • Source-Gulf News

    Country - Kuwait

  • Source-Alnahar

    Country - Kuwait

  • Source-Al Khaleej

    Country - Kuwait

  • Source-Alseyssah

    Country - Kuwait

  • Source-Alqabas

    Country - Kuwait

MOBILE APPS

Download the App on your smartphone or tablet today.

MAZAYA IR APP

icon icon

CRM APP

icon icon

STAY CONNECTED

Be updated with our latest news alert