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Prosperous properties: Emaar sees 31 percent leap in Q3 profit

Emaar Properties on Sunday reported a 31 per cent surge in net profit during the third quarter.

The developer said in a statement that it made a net profit of Dh843 million in the three months to September 30. That compares with a profit of Dh645 million in the year-earlier period, it said.

For the first nine months, Emaar recorded a growth in net profit of 16 per cent to Dh3.048 billion compared to Dh2.622 billion during the same period in 2014.

Third-quarter revenues jumped 56 per cent to Dh3.329 billion from Dh2.136 billion in the same 2014 period. Revenues for the first nine months recorded a 25 per cent growth to Dh9.849 billion over the same period last year.

Underlining the strong growth of its shopping malls, retail and hospitality business, recurring revenues for the first nine months of 2015 grew to Dh4.194 billion, 10 per cent higher than Dh3.808 billion [during same period last year], the developer said. This represents 43 per cent of the total revenues during the first nine months of 2015.

Emaars international operations recorded robust growth with revenues from global operations during the first nine months of 2015 at Dh1.734 billion, which is 18 per cent of the total revenue.

This is 21 per cent more than the revenues from international operations during the same period last year, it said.

Mohamed Alabbar, chairman of Emaar Properties, said the robust performance highlights the success of the companys strategy to develop exceptional real estate assets in its home market of Dubai and other key international markets with a focus on ensuring the highest standards of build quality and service excellence.

In Dubai, our operations are aligned with the Dubai Plan 2021 vision outlined by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to build a smart and sustainable city that will the preferred place to work, live and visit. Our projects, including joint venture initiatives, create smart cities of the future that also support the ongoing preparations to host Expo 2020 Dubai, which serves as a growth catalyst for the economy, said Alabbar. He said Emaars commitment is to create long-term value for its stakeholders and the strong recurring revenue streams and international operations position it as a well-diversified entity with strong financial fundamentals.

With Dubai now welcoming the festive season that further energises the tourism and hospitality sectors, we are confident of closing the year on a robust and positive note.

Emaar said it launched several key residential projects in third quarter 2015 that have gained strong response from regional and international investors who regard Dubai as a safe investment destination. The companys roadshows in overseas markets too have contributed to strong sales growth.

Among the three key projects that are currently being developed by Emaar include Dubai Creek Harbour, a modern master-planned community located along Dubai Creek, in close proximity to the Dubai International Airport and Ras Al Khor Wildlife Sanctuary. Located on a land area of approximately six million sqm, it is developed by Emaar in association with Dubai Holding. Emaar has launched the Creekside 18 residences in The Island District of Dubai Creek Harbour during the third quarter of 2015.

A joint venture between Emaar and Meraas Holding, the approximately 2,700-acre Dubai Hills Estate is another innovative development, envisaged as Dubais first green city with the newly-launched maple townhouses set amidst leafy emerald avenues and green corridors.

Emaar is also developing The Opera District in Downtown Dubai, one of the most sought-after residential destinations in Dubai today. It is anchored by Dubai Opera. Emaar has launched two top-end residential developments within The Opera District - Opera Grand and the recently-unveiled Forte homes.

Demand for the launches in Dubai, especially from end-use investors, has been strong with total sales during the first nine months of year at Dh7.513 billion. Sales in international markets during the same period were valued at Dh 3.929 billion.



Weekly Analysts' Ratings Changes for Rio Tinto plc (RIO)

Several brokerages have updated their recommendations and price targets on shares of Rio Tinto plc (NYSE: RIO) in the last few weeks:

  • 10/21/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Deutsche Bank.
  • 10/19/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Beaufort Securities.
  • 10/14/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Deutsche Bank.
  • 10/13/2015 Rio Tinto plc was downgraded by analysts at Vetr from a sell rating to a strong sell rating. They now have a $32.38 price target on the stock.
  • 10/13/2015 Rio Tinto plc was downgraded by analysts at Zacks from a buy rating to a hold rating. According to Zacks, Rio Tinto reported weak results for first-half 2015. Earnings and revenues both lagged the respective year-ago tallies due to macroeconomic issues such as recession in China, Greece debt negotiations and weak prices of commodities in the global mining industry. Moreover, threats of industry rivalry and dismal weather conditions expose the company to risks of loss in revenues as well as margins in the near term. Despite these adversities, Rio Tinto, however, aims to improve its financial fundamentals with the help of greater cost discipline, strategic capital-deployment programs and new growth projects.
  • 10/12/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Nomura.
  • 10/10/2015 Rio Tinto plc had its neutral rating reaffirmed by analysts at BNP Paribas.
  • 10/7/2015 Rio Tinto plc was downgraded by analysts at Vetr from a buy rating to a hold rating. They now have a $37.66 price target on the stock.
  • 10/7/2015 Rio Tinto plc was upgraded by analysts at Morgan Stanley from an equal weight rating to an overweight rating. They now have a $38.75 price target on the stock, up previously from $35.42.
  • 10/5/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Deutsche Bank.
  • 10/2/2015 Rio Tinto plc was upgraded by analysts at Societe Generale from a hold rating to a buy rating.
  • 9/28/2015 Rio Tinto plc was upgraded by analysts at Vetr from a buy rating to a strong-buy rating. They now have a $37.29 price target on the stock.
  • 9/25/2015 Rio Tinto plc had its hold rating reaffirmed by analysts at Liberum Capital.
  • 9/21/2015 Rio Tinto plc was upgraded by analysts at Vetr from a hold rating to a buy rating. They now have a $37.29 price target on the stock.
  • 9/16/2015 Rio Tinto plc had its sell rating reaffirmed by analysts at Goldman Sachs.
  • 9/16/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Citigroup Inc..
  • 9/15/2015 Rio Tinto plc had its overweight rating reaffirmed by analysts at JPMorgan Chase Co..
  • 9/14/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Deutsche Bank.
  • 9/8/2015 Rio Tinto plc was downgraded by analysts at Vetr from a buy rating to a hold rating. They now have a $37.29 price target on the stock.
  • 8/31/2015 Rio Tinto plc was downgraded by analysts at Vetr from a buy rating to a hold rating. They now have a $37.29 price target on the stock.
  • 8/28/2015 Rio Tinto plc had its buy rating reaffirmed by analysts at Citigroup Inc..

Rio Tinto plc (NYSE:RIO) traded down 0.770% on Monday, reaching $37.995. The company had a trading volume of 757,712 shares. The stocks 50 day moving average is $36.32 and its 200-day moving average is $40.25. Rio Tinto plc has a 1-year low of $31.97 and a 1-year high of $50.07. The stock has a market capitalization of $69.39 billion and a P/E ratio of 24.063.

Rio Tinto plc (NYSE:RIO) is a global mining company. Rio Tintos business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, gold, industrial minerals (borates, titanium dioxide and salt), iron ore, thermal and metallurgical coal and uranium. The Company has activities world-wide and is represented in Australia and North America with businesses in Asia, Europe, Africa and South America.

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Moody's upgrades KSK Koeln's long-term deposit ratings to Aa3; outlook stable

Long-term debt rating affirmed at A1, negative outlook

Frankfurt am Main, November 03, 2015 -- Moodys Investors Service has today upgraded Kreissparkasse Koelns (KSK Koeln) long-term deposit ratings to Aa3 from A1 with a stable outlook. At the same time, Moodys has affirmed the banks long-term debt rating at A1 with a negative outlook. The rating agency has also affirmed KSK Koelns baseline credit assessment (BCA) at baa1, the adjusted BCA at a2, and the banks Prime-1 short-term deposit ratings and its counterparty risk assessment (CRA) at Aa1(cr)/Prime-1(cr).

A full list of affected ratings can be found at the end of this press release.

RATINGS RATIONALE

UPGRADE OF THE BANKS LONG-TERM DEPOSIT RATINGS AND AFFIRMATION OF ITS LONG-TERM DEBT RATING

The upgrade of KSK Koelns long-term deposit ratings to Aa3 and the affirmation of the banks A1 long-term debt rating reflect the application of Moodys Advanced Loss Given Failure (LGF) Analysis based on KSK Koelns audited year-end 2014 financials, as well as unchanged government support assumptions for the bank as a member of domestically systemic Sparkassen-Finanzgruppe (S-Finanzgruppe, Corporate Family Rating Aa2 stable / BCA a2) affording one notch of government support uplift.

Based on year-end 2014 audited financial accounts, Moodys believes KSK Koelns depositors benefit from a greater tranche size and subordination than previously assumed in the rating agencys Advanced LGF Analysis. Following this reassessment, the loss-given-failure for KSK Koelns institutional and corporate depositors is low, resulting in a one-notch uplift for the banks Preliminary Rating Assessment (PRA) from its a2 adjusted BCA. At the same time, this re-assessment did not change the outcome of the loss-given-failure for KSK Koelns debt instruments which remains moderate. Previously, Moodys had considered the loss-given-failure for both KSK Koelns debt and deposits to be moderate.

Moodys assumption of a moderate probability of government support for KSK Koelns creditors results in a one-notch uplift to the PRA to reach a long-term deposit rating of Aa3. The rating agency assigns the same support probability to senior unsecured debt, resulting in a senior unsecured rating of A1. This assessment reflects KSK Koelns association with S-Finanzgruppe, which Moodys considers to be systemically relevant at the national level in Germany.

AFFIRMATION OF THE baa1 BCA AND THE a2 ADJUSTED BCA

The affirmation of the baa1 BCA reflects KSK Koelns overall solid financial fundamentals, characterized by a strong regional franchise in its home market, adequate capitalization and conservative risk and liquidity management. The banks BCA remains constrained by significant sector concentrations as well as modest financial performance.

Moodys considers current asset quality and risk provisioning metrics to benefit from a relatively benign macroeconomic environment in Germany. The rating agency expects these metrics to normalize over time, resulting in an expectation of a lower return-on-assets for KSK Koeln in the persisting low interest rate environment.

The affirmation of the BCA also reflects the benefits from the low -- and further reduced -- dependence of KSK Koeln on market funding. This factor is partly offset by the banks limited liquidity buffers, which the rating agency nevertheless considers adequate in light of KSK Koelns stable funding profile.

The affirmation of KSK Koelns adjusted BCA of a2 reflects two notches of affiliate support derived from an unchanged very high support likelihood under the institutional protection scheme of S-Finanzgruppe.

DIFFERENT OUTLOOKS ON SENIOR DEBT AND DEPOSIT RATINGS

The outlook on the banks long-term deposit ratings is stable and the outlook on the banks senior unsecured debt rating is negative. The different outlooks reflect the approved legislation in Germany that will subordinate major parts of senior debt to deposits to the benefit of institutional and corporate depositors and to the detriment of senior unsecured creditors. This modified German insolvency order, which is scheduled to become effective as of January 2017, will place downward pressure on KSK Koelns senior debt rating, whereas we expect it to have no impact on the banks deposit ratings.

WHAT WOULD MOVE THE RATING UP / DOWN

Upward pressure on KSK Koelns long-term ratings may result from a significant increase in the banks bail-in-able debt and / or a revision of KSK Koelns medium-term liability structure planning in light of future minimum requirements for own funds and eligible liabilities (MREL).

Stronger capital ratios and a sustained positive earnings trend could result in upward potential for KSK Koelns BCA. Because the banks adjusted BCA is at the same level as the BCA of S-Finanzgruppe, a BCA upgrade of KSK Koeln would not result in an upgrade of its long-term ratings.

Downward pressure could be exerted on KSK Koelns long-term ratings as a result of: (1) A deterioration of the banks credit fundamentals and performance leading to a lowering of its standalone baa1 BCA; (2) a weakening of the creditworthiness of S-Finanzgruppe or Moodys revised assumptions of sector support available to KSK Koeln in case of need; or (3) a significant decrease in the banks bail-in-able debt cushion. As indicated by the negative rating outlook, KSK Koelns senior debt rating may be downgraded upon the subordination of senior unsecured debt to junior deposits, as foreseen by the revised German insolvency ranking which will become effective in January 2017.

LIST OF AFFECTED RATINGS

The following ratings of Kreissparkasse Koeln were upgraded:

- Long-term (local and foreign currency) deposit ratings to Aa3 with a stable outlook from A1, stable outlook.

The following ratings and rating inputs of Kreissparkasse Koeln were affirmed:

- Baseline Credit Assessment (BCA) at baa1;

- Adjusted BCA at a2;

- Short-term (local and foreign currency) deposit ratings at Prime-1;

- Long-term (local currency) senior debt rating at A1 with a negative outlook;

- Long- and short-term Counterparty Risk Assessment at Aa1(cr)/Prime-1(cr).

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in March 2015. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moodys rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support providers credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moodys legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Bernhard Held
Asst Vice President - Analyst
Financial Institutions Group
Moodys Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Carola Schuler
MD - Banking
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Releasing Office:
Moodys Deutschland GmbH
An der Welle 5
Frankfurt am Main 60322
Germany
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moodys upgrades KSK Koelns long-term deposit ratings to Aa3; outlook stable

Kroll Bond Rating Agency Assigns A+/K1 Deposit & Short-Term Ratings to ...

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a deposit rating of A+ and a short-term deposit rating of K1 to Signature Bank (NASDAQ: SBNY, "the Bank"). In addition, KBRA has assigned a senior unsecured debt rating of A+, a subordinated debt rating of A, and a short-term debt rating of K1 to SBNY. The outlook on all ratings is stable.

The ratings are supported by SBNY's solid financial fundamentals as evidenced through strong earnings metrics, a healthy liquidity position and sound capital ratios. Moreover, the ratings are reinforced by Signature's highly experienced management team, disciplined underwriting practices, and above peer performance during the downturn. Ratings are primarily constrained by the Bank's spread reliant earnings streams and relatively low geographic diversification. However, overall credit quality remains strong and geographic concentration concerns are largely mitigated by management's deep knowledge of key markets.

The ratings are based on KBRA's Global Bank and Bank Holding Company Rating Methodology published on January 28, 2015.

Please use the following link to view the report:
www.krollbondratings.com/show_report/3197

About Kroll Bond Rating Agency

KBRA is registered with the US Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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UAE- Emaar 9-month net up 16%

(MENAFN - The Arabian Post) Emaar Properties recorded a growth in net profit of 16 per cent for the first nine months (Jan to Sept) 2015 to AED 3.048 billion (US 830 million) compared to AED 2.622 billion (US 714 million) during the same period in 2014.

Revenues for the first nine months of 2015 were AED 9.849 billion (US 2.681 billion), a growth of 25 per cent over the same period last year at AED 7.888 billion (US 2.148 billion).

During the third quarter (July to Sept) of 2015, Emaar recorded a net profit of AED 843 million (US 230 million), 31 per cent higher than Q3 2014 net profit of AED 645 million (US 176 million). Q3 2015 revenues were AED 3.329 billion (US 906 million) growing by 56 per cent compared to Q3 2014 revenues of AED 2.136 billion (US 582 million).



Underlining the strong growth of its shopping malls, retail and hospitality business, recurring revenues for the first nine months of 2015 grew to AED 4.194 billion (US 1.142 billion), 10 per cent higher than AED 3.808 billion (US 1.037 billion) during same period last year. This represents 43 per cent of the total revenues during the first nine months of 2015.

Emaars international operations recorded robust growth with revenues from global operations during the first nine months of 2015 at AED 1.734 billion (US 472 million), which is 18 per cent of the total revenue. This is 21 per cent more than the revenues from international operations during the same period last year.

He added: Our commitment is to create long-term value for our stakeholders and the strong recurring revenue streams and international operations position us as a well-diversified entity with strong financial fundamentals. With Dubai now welcoming the festive season that further energises the tourism and hospitality sectors, we are confident of closing the year on a robust and positive note.

Emaar has launched several key residential projects in Q3 2015 that have gained strong response from regional and international investors who regard Dubai as a safe investment destination. The companys roadshows in overseas markets too have contributed to strong sales growth.

The three key projects that are developed by Emaar currently include Dubai Creek Harbour, a one-of-its-kind modern master-planned community located along the historic Dubai Creek in the heart of the city, in close proximity to the Dubai International Airport and Ras Al Khor Wildlife Sanctuary. Located on a land area of approximately 6 million sq. metres (around 1,378 acres), it is developed by Emaar in association with Dubai Holding. Emaar has launched the Creekside 18 residences in The Island District of Dubai Creek Harbour during the third quarter of 2015.

A joint venture between Emaar and Meraas Holding, the approximately 2,700 acre Dubai Hills Estate is another development, envisaged as Dubais first green city with the newly launched Maple townhouses set amidst leafy emerald avenues and green corridors.

Emaar is also developing The Opera District in Downtown Dubai, one of the most sought-after residential destinations in Dubai today. It is anchored by Dubai Opera, a multi-format venue for opera, theatre, concerts, art exhibitions, orchestra and film. Emaar has launched two top-end residential developments within The Opera District Opera Grand and the recently unveiled Forte homes.

Demand for the launches in Dubai, especially from end-use investors, has been strong with total sales during the first nine months of year at AED 7.513 billion (US 2.045 billion). Sales in international markets during the same period were valued at AED 3.929 billion (US 1.070 billion).

The hospitality leisure business of Emaar recorded revenues of AED 1.199 billion (US 326 million) during the first nine months of the year, similar to revenues during the same period last year at AED 1.196 billion (US 326 million). Hospitality revenues now account for 12 per cent of the total revenue.

With two hotel brands The Address Hotels Resorts and Vida Hotels and Resorts currently under the hospitality business, Emaar is now all set to roll out the first property under its third brand, Rove Hotels (a joint venture with Meraas Holding), targeting the mid-market segment. The average occupancy in the flagship Address Resorts in Dubai during the first nine months of 2015 was 84 per cent.

The Address Hotels Resorts and Vida Hotels and Resorts are now expanding its footprint to Turkey, Egypt, Nigeria and Bahrain to operate hotels and serviced residences.

Emaar Malls , the shopping malls retail business majority-owned by Emaar Properties, recorded a net profit of AED 1.221 billion (US 332 million) during the first nine months of 2015, 30 per cent higher than the same period last year.

Emaar Malls, which includes The Dubai Mall, its flagship mall and the worlds largest retail and entertainment destination, welcomed over 90 million visitors during the first nine months of 2015, 11 per cent higher than the same period last year.

With strong financial fundamentals, Emaar has assets valued at over AED 156 billion (US 42 billion) and a land bank of 195 million sq. m in Dubai and international markets.