Moody's Ratings upgrades PNC Investments LLC (Sobha Realty)'s CFR to Ba2
Dubai: 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
About Sobha Realty
Sobha Realty is an international luxury developer committed to redefining the art of living through sustainable communities. Established in 1976 as an interior decoration firm in Oman by PNC Menon – a visionary entrepreneur, the company has grown its presence with developments and investments in the UAE, Oman, and India. For nearly five decades, Sobha Realty has been redefining the real estate value chain through 'Backward Integration,' by leveraging its inherent in-house capabilities of conceptualisation, design, and development. Today, the firm has developed into one of the most prominent and premium real estate developers in the UAE as well as aims to become a global real estate developer, with its essence, the 'Art of the Detail,' remaining deeply embedded in the organisation's DNA. With a proven track record of delivering projects ahead of schedule, the company has eleven masterplans across the UAE and is continually expanding its presence in the city with a number of other prominent projects. The flagship community of Sobha Realty (Sobha Hartland) is a thriving community that is home to over 11,000 residents.
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