Latest news with #SPGlobalRatings
Zawya
2 days ago
- Business
- Zawya
Vision 2030 investments driving Saudi equity markets growth: S&P
With Saudi authorities continuing to invest in developing the domestic corporate bond and sukuk markets, the development of the kingdom's financial markets is likely to accelerate, stated S&P Global Ratings in its report "Local Ambitions, Global Lessons: Benchmarking Saudi Arabia's Domestic Corporate Bond And Sukuk Markets." In this report, the ratings agency also examines the development of sukuk markets in Latin America, Europe, the Middle East, and Asia. In emerging Asia, the development of deeper domestic capital markets has been a consistent economic policy, even though the depth and composition of domestic bond markets vary widely. "The development of Saudi Arabia's overall financial markets continues to accelerate due to large-scale Vision 2030 investments, regulatory reforms, initiatives to attract overseas funding, and investments in capital markets infrastructure over the past decade," said S&P Global Ratings credit analyst Timucin Engin. "The markets' growth will help companies to diversify their funding bases and secure long-term capital," he noted. The kingdom's Vision 2030 projects are aimed at developing a liquid local-currency debt capital market with diverse issuers and investors. Significant hard currency issuance by nonfinancial corporates began only a few years ago, but it's starting to speed up. "Deeper domestic capital markets all share the same characteristics of high issuer and investor diversity, stringent and timely disclosure requirements, good liquidity, and high-quality market infrastructure," said S&P Global Ratings credit analyst Xavier Jean. "Malaysia's and Thailand's in particular have been well developed for decades. Malaysia hosts the most developed Sukuk market globally, now accounting for over 60% of global issuance," he added. "The 1981 privatization of the pension system enhanced the demand for domestic fixed income products in Chile," said S&P Global Ratings credit analyst Luca Rossi. "The development of a solid local bond market was facilitated by a favorable legislative framework, promoting transparency and investor protection," he added. Similarly, the role of the central government was crucial in Brazil in supporting the ascent of local institutional investors and promoting the diversification of the corporate bond market, even through tax incentives (infrastructure debentures). KEY TAKEAWAYS *The Saudi domestic corporate bond and sukuk markets expanded at a steady pace over the past five years, while a limited number of issuers currently dominate the markets. Foreign participation and secondary trading are limited. S&P Global Ratings believes strategic investments in market infrastructure, policy support, and regulatory developments should support the markets' long-term growth. "We view the development of domestic bond and sukuk markets as supporting credit conditions in the country because companies can diversify their funding bases and access long-term capital, it added. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
South China Morning Post
3 days ago
- Business
- South China Morning Post
Rebound in Hong Kong's home prices unlikely to come this year: analysts
The improving sentiment in Hong Kong's property market has spurred hope for a sustainable recovery in home prices, but analysts suggest the rebound is unlikely to come this year due to an uptrend in mortgage rates and a nagging supply glut. As of Friday, about 9,150 first-hand transactions had been recorded so far this year, a 3.9 per cent increase from a year earlier and a six-year high since 11,580 transactions were recorded in the first half of 2019, according to agents. Growth for lived-in homes was more muted. An index measuring secondary home prices inched up 0.03 per cent in May from a month earlier after rising slightly in April, according to the Rating and Valuation Department. In the first five months of the year, second-hand home prices declined 0.9 per cent. Meanwhile, rents in the city climbed 0.67 per cent in May from a month earlier, the sixth consecutive month of increases. As rents rise and home prices drop, rental yields on the city's residential properties have been increasing, said Edward Chan, director at S&P Global Ratings. 'We estimate the average gross rental yield for Hong Kong's private homes to be about 3.5 per cent,' he said. 'Based on a mortgage rate of about 2.3 per cent, a [Hong Kong interbank offered rate (Hibor)] of less than 1 per cent plus a margin of about 1.3 per cent, there will be a positive carry.'
CNA
7 days ago
- Business
- CNA
Boost household spending to rebalance China's economy: Economist
S&P Global Ratings Chief Economist Paul Gruenwald argues that boosting household purchasing power in China is essential to rebalancing Asia's top economy so that it can achieve its ambitious growth targets.
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
