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Eye of Riyadh
Business & Money | Tuesday 8 October, 2019 1:46 am |

Azizi Developments receives first time rating of ‘BB-’ with a stable outlook from Fitch

Azizi Developments, a leading private developer in the UAE, was awarded the rating of ‘BB-’ with a stable outlook by Fitch, one of the highly esteemed big three global credit rating agencies. This was the first time the developer went through Fitch’s rating process since its inception.

The rating reflects Azizi Developments’ financial stability, its extensive capacity for repaying financial commitments, and a well-thought-out, sustainable business model, catering to a diversified range of customers, including investors, as well as end-user residents — both local and expatriates. 

The credit rating agency states that Azizi Developments holds a unique market position in the Dubai real estate sector that delivers a robust profitability and favourable cash flow generation, and that “Azizi’s current growth strategy will help to establish the company as a key player”. 

Fitch’s report also highlights that Azizi “has developed key relationships with master developers allowing them to acquire lands in developing communities at proximity to Downtown Dubai and Sheikh Zayed Road. This is indicative of the strategy the company adopts, with an effective cost construction model enabling Azizi to offer […] properties in key locations.”

Commenting on the rating, Farhad Azizi, CEO of Azizi Developments, said: “We tailor our offerings to the specific needs and aspirations of those seeking accommodation that will yield them growth-inclined rental yields and a promising value appreciation. Developers that have their customers’ best interest at the very forefront of all their decisions, and that offer residential and commercial units in the most sought-after locations with the best connectivity, will thrive and overcome even the worst of slumps that may occur as part of a normal market cycle”. 

Mika Toivola, CFO of Azizi Developments, added: “Given the fact that the Dubai real estate market in general, and the residential segment in particular, has witnessed a double digit price correction for primary and secondary assets, we at Azizi have put together a bespoke growth strategy through which we are now witnessing strong operational performance, coupled with high sales rates. Our strategy enables us to sell, fund and deliver residential and commercial properties over the cycle. Consequently, it has paved the way in us securing a strong credit rating, despite a market condition that some perceive as uncertain.”

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