Moody’s Ratings Upgrades PNC Investments LLC (Sobha Realty)’s CFR to Ba2; Affirms Sukuk Rating at Ba2

PNC Investments LLC (PNCI), the parent company of global luxury real estate developer Sobha Realty, has received an upgrade in its Corporate Family Rating (CFR) from Moody’s Ratings, which raised the rating to Ba2/stable from Ba3/stable. Additionally, the senior unsecured rating of PNCI’s existing $500 million sukuk issued by Sobha Sukuk Limited has been affirmed at Ba2, all outlooks remain stable.

This upgrade reflects PNCI’s continued strong sales, robust construction activity, and significant improvement in credit metrics. In 2024, revenue rose to AED 8.9 billion from AED 6.5 billion in the previous year. Moody’s-adjusted debt to EBITDA improved to 1.7x from 2.7x in 2024 and is expected to further strengthen to 0.9x in 2025.

As the second largest privately held residential developer in Dubai by sales, Sobha Realty continues to demonstrate the strength of its Backward Integration Model, allowing full control from design to delivery. This, coupled with a strong backlog of more than AED 23 billion, positions the company to navigate evolving market dynamics effectively while delivering on its commitment to excellence and timely project delivery.

To read more, please reach the full report:

https://www.moodys.com/researchandratings/region/middle-east/united-arab-emirates/0420B9