Majid Al Futtaim Holding LLC

Primary Credit Analyst:

Sapna Jagtiani, Dubai + 97143727122; sapna.jagtiani@spglobal.com

Secondary Contact:
Tommy J Trask, Dubai (971) 4-372-7151; tommy.trask@spglobal.com

Table Of Contents

Credit Highlights

Outlook

Our Base-Case Scenario

Company Description

Business Risk

Financial Risk

Liquidity

Covenant Analysis

Environmental, Social, And Governance

Issue Ratings - Subordination Risk Analysis

Reconciliation

Ratings Score Snapshot

Related Criteria

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Table Of Contents (cont.)

Related Research

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Majid Al Futtaim Holding LLC
Business Risk: SATISFACTORY
Issuer Credit Rating
Vulnerable Excellent
bbb bbb bbb

Financial Risk: INTERMEDIATE BBB/Stable/A-2

Highly leveraged Minimal

Anchor Modifiers Group/Gov't

Gulf Cooperation Council Regional Scale

gcAA/--/gcA-1+

Credit Highlights
Overview
Key Strengths Key Risks
High quality of assets in the real-estate portfolio. Geographic concentration in Dubai which is currently experiencing lower
consumer confidence, real-estate supply-and-demand imbalances, and
economic slowdown.
A strong management team, with a good track record of High exposure to development activity and countries we consider subject to
building successful greenfield developments under a prudent relatively high country risk.
pre-letting model.
High operating cash flow and prudent liquidity management. High capital expenditure (capex), although mostly discretionary.
A longstanding and successful regional franchise with
France-based international food retailer Carrefour S.A.

Non-cash losses that affected MAF Holding's 2018 financials are strong indicators of a weakening operating
environment. In 2018, Majid Al Futtaim Holding LLC (MAF Holding) recorded fair value loss of UAE dirham (AED) 1.2
billion on completed properties, indicative of the challenging market conditions and their broader negative effect on
the company's mall and hotel revenues. This situation is mostly due to excessive retail space density in the region,
which affects rentals, creates over-supply of hotel rooms, and reduces shoppers' and tourists' discretionary spending.
In addition, the company recorded an impairment loss of AED1.4 billion on properties under construction and
investments in joint ventures, also due to the challenging economic environment. This led to more prudent occupancy
assumptions and deferral to the opening dates, based on the current market conditions. While these losses are
non-cash in nature and don't impact S&P Global Ratings' key ratios, they point to a deteriorating operating
environment.

Our rating on MAF Holding is supported by its very high asset quality and meaningful diversification of business.
Despite the weakening operating environment in the company's key market, Dubai (60% EBITDA as of Dec. 31, 2018),
owing to lower consumer confidence and real estate supply-and-demand imbalances, we expect MAF Holding's
performance to remain resilient. MAF Holding's assets are among the top-tier assets in Dubai; they are large and well
located, with very high occupancy rates--albeit weakening rental rates, in line with market trends in the city. The

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 Majid Al Futtaim Holding LLC

company benefits from good geographic diversification compared with its peers in the region, and strong business
diversification, generating EBITDA from rental activities (MAF Properties); retail sales (MAF Retail); and ancillary
businesses such as cinema, leisure, entertainment, and fashion (MAF Ventures). In addition, the company's retail
business (at Carrefour, which generated 30% of the company's EBITDA) is increasingly moving toward more resilient
food and related sales.
Chart 1

We view MAF Holding's ability to optimize capex and acquisitions as a key strength. MAF Holding has high exposure
to greenfield developments, with AED12.6 billion of investments (25% of gross asset value) planned over the next
three years. We see as positive the fact that only about 40% of this capex is committed, and that the management has
a long track record of delivering successful greenfield developments. We also believe that if the company were to
undertake any opportunistic acquisitions, it would be able to curtail capex at short notice (two months) to stay within
budget.

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 Majid Al Futtaim Holding LLC

Outlook: Stable

The stable outlook reflects our expectation that MAF Holding's performance will remain strong over the next 24
months. Its strong cash flow generation should enable MAF Holding to continue its growth strategy without
weakening its financial leverage metrics, in our view.

Based on the current 65%-70% level of EBITDA derived from property rental activities, we anticipate that MAF
Holding will maintain a ratio of debt to EBITDA below 4.5x and EBITDA interest coverage above 3.8x in
2019-2020. These ratios are commensurate with a modest financial risk profile, which we adjust downward by one
category to intermediate to reflect our expectation of somewhat higher volatility in MAF Holding's non-real-estate
operations. These ratios stood at 3.6x and 5.0x, respectively, on Dec. 31, 2018. We also believe that credit quality
at MAF Holding's parent, MAF Capital LLC, is not a constraint to the rating, because we consider it to be similar to
that of MAF Holding.

The property rentals business can, in our opinion, tolerate higher financial leverage than retail and other
businesses. We would likely adjust our target ratios in the event that the property rental activities ceased to
account for a substantial majority of company EBITDA.

Downside scenario

We could consider a downgrade if MAF Holding was unable to keep its debt-to-EBITDA ratio below 4.5x and
EBITDA interest coverage ratio above 3.8x, or if the credit profile of its controlling parent was materially weaker.

Upside scenario

We see limited upside rating potential at present, given MAF Holding's high geographic concentration in Dubai
and the deteriorating credit conditions there. Additionally, MAF Holding's relatively significant development
exposure, compared with that of its property-investment peers, restricts upside.

Our Base-Case Scenario

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 Majid Al Futtaim Holding LLC

Assumptions Key Metrics

• We expect falling retail sales due to a sluggish

2018A 2019E 2020E
regional economy that doesn't encourage spending,
Debt*/EBITDA (x) 3.6 3.5-4.0 3.5-4.0
growth in online shopping, and increasingly
cost-sensitive tourists. In addition, the growth of EBITDA interest cover (x) 5.0 4.3-4.8 4.2-4.7
e-commerce poses a threat to brick-and-mortar
retail. MAF Holding is addressing this challenge by *S&P Global Ratings' adjustments for operating lease
investing in last-mile deliveries, thereby delivering commitments, pension liabilities, accrued interest, and
an omnichannel shopping experience for Majid Al the debt content of the hybrid instrument add AED5.2
Futtaim's customers. billion ($1.4 billion) to reported consolidated debt as of
• We expect MAF Holding's revenues will increase by Dec. 31, 2018.
4%-6% in 2019 with the full-year contributions of
four new malls, one hotel, 10 hypermarkets, and 25 A--Actual. E--Estimate.
supermarkets opened in 2018-2019.
• Revenues are expected to grow by 7%-9% in 2020
due to new greenfield deliveries, including two malls
in Egypt and United Arab Emirates (UAE), 21
hypermarkets, and 37 supermarkets in 2019-2020.
• Capex of approximately AED3.9 billion ($1.1 billion)
in 2019 and AED4.3 billion ($1.2 billion) in 2020.
• A combined EBITDA margin of 12%-14%.

Base-Case Projections
MAF Holding's strong market position and favorable long-term contracts continue to support margins.MAF Holding
continues to operate with visibly stronger margins than its peers. We expect the company to maintain largely
unchanged EBITDA margins of above 60% in the properties business, ratio of debt to EBITDA below 4.5x, and
EBITDA interest coverage above 3.8x over the next two years.

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 Majid Al Futtaim Holding LLC

Chart 2

We expect free cash flow generation to remain negative in 2019-2020. We understand that MAF Holdings plans capex
of about AED8.2 billion over the next two years. This will hamper free cash flow generation, but support future
revenue and EBITDA growth.

Significant development activity is supported by prudent liquidity management. S&P Global Ratings considers MAF
Holding's liquidity management to be prudent, as the company carries significant buffers versus its funding
requirements. In addition to our expectation of healthy cash flow generation, as of Dec. 31, 2018, the company has
available credit lines of AED9.3 billion, most of which are not due until 2023 and beyond.

Company Description
MAF Holding owns 21 shopping malls, including five superregional malls, across the Middle East. Additionally, it owns
11 hotel properties in Dubai and two hotels in Bahrain's capital, Manama. It operates 107 Carrefour hypermarkets and
157 supermarkets across 14 countries through an exclusive franchise agreement with the France-based international
food retailer Carrefour, the world's second-largest food retailer. MAF Holding's malls enjoy high occupancy rates.

A single shareholder, Mr. Majid Al Futtaim, controls MAF Holding. Risks associated with the concentrated shareholder
structure have been mitigated by comprehensive governance standards and the participation of experienced and
reputable board members at both the holding and operating company levels.

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 Majid Al Futtaim Holding LLC

Business Risk: Satisfactory

MAF Holding's business strengths include its very good asset quality, with high occupancy rates of 95% on average for
the portfolio and strong footfall of 192 million visitors for all of its shopping malls. MAF Holding is a leading food
retailer in the Middle East, operating under a longstanding and successful regional franchise agreement with Carrefour.

These strengths are mitigated by high geographic concentration, with about 66% of MAF Holding's 2018 EBITDA
derived from assets in the UAE (mainly Dubai). The rapid expansion of Carrefour's hypermarkets and opening of new
malls across the region may help reduce the concentration somewhat. MAF Holding is looking to increase the number
of its hypermarkets to about 139 over the next three years, including in countries we view as politically unstable, such
as Egypt, Bahrain, and a few African nations.

Chart 3 Chart 4

We note that the weaker oil prices of the past few years and sluggish nonoil economy have led to lower purchasing
power in the Middle East. Moderate growth expectations for the Middle East, fueled by lower consumer confidence
due to job losses and reduced disposable incomes, plus increasing geo-political risks, could reduce retail sales. We
don't expect a significant impact on MAF Holding's performance, however, thanks to long retail-lease structures, very
good asset quality, and diversification of assets. Because of the rapid increase in supply, Dubai's and Bahrain's
hospitality markets struggled in 2018, with falling average daily rates and lower occupancy. But MAF Holding's hotel
portfolio (which contributes only 4% of its EBITDA in 2018) was in line with the market average owing to its good
asset quality and location; occupancy reported was 75% in 2018 versus 76% in 2017, and revenue per available room
had fallen by 13% over the year.

The company also has high exposure to development activity (AED8.4 billion planned at MAF Properties over the next
three years), with three malls under development (City Centre Al Maza in Egypt in 2019, City Centre Al Zahia in UAE
by 2020, Mall of Oman in Oman by 2021); the City Centre Ajman expansion in UAE; the City Centre Alexandria

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 Majid Al Futtaim Holding LLC

redevelopment in Egypt; and plans to build malls in the Saudi capital, Riyadh.

Peer comparison
Table 1
Majid Al Futtaim Holding LLC--Peer Comparison
Industry sector: Real estate investment trust or company

Majid Al Futtaim Emaar Malls Unibail-Rodamco-Westfield Klepierre

Holding LLC PJSC SE Mercialys S.A.
BBB/Stable/A-2 BBB-/Stable/-- A/Stable/A-1 BBB/Stable/A-2 A-/Stable/A-2
Ratings as of July 14,
2019
--Fiscal year ended Dec. 31, 2018--

(Mil. $)
Revenue 9,434.9 1,210.4 2,925.8 204.3 1,542.3
EBITDA 1,453.6 776.5 2,435.1 182.6 1,208.6
Funds from operations 1,153.0 696.8 1,962.5 117.4 971.9
Interest expense 289.7 76.1 384.7 36.3 191.6
Cash interest paid 281.5 79.7 397.1 64.9 210.6
Cash flow from operations 1,234.1 625.2 2,036.5 160.9 968.3
Capital expenditure 1,295.7 148.0 1,795.5 90.8 376.2
Free operating cash flow (61.6) 477.2 240.9 70.2 592.1
Discretionary cash flow (465.6) 121.6 (1,123.3) (70.2) (368.7)
Cash and short-term 412.7 72.3 423.5 431.7 348.6
investments
Debt 5,247.7 1,146.7 28,349.8 1,743.5 10,312.1
Equity 9,146.1 4,739.4 35,660.1 2,437.2 14,761.4

Adjusted ratios
EBITDA margin (%) 15.4 64.2 83.2 89.4 78.4
Return on capital (%) 6.8 11.5 4.6 3.3 4.8
EBITDA interest coverage 5.0 10.2 6.3 5.0 6.3
(x)
FFO cash interest 5.1 9.7 5.9 2.8 5.6
coverage (x)
Debt/EBITDA (x) 3.6 1.5 11.6 9.5 8.5
FFO/debt (%) 22.0 60.8 6.9 6.7 9.4
Cash flow from 23.5 54.5 7.2 9.2 9.4
operations/debt (%)
FOCF/debt (%) (1.2) 41.6 0.8 4.0 5.7
DCF/debt (%) (8.9) 10.6 (4.0) (4.0) (3.6)
Debt/debt and equity (%) 36.5 19.5 44.3 41.7 41.1

FFO--Funds from operations. FOCF--Free operating cash flow. DCF--Discretionary cash flow.

Financial Risk: Intermediate

Our assessment of MAF Holding's financial risk profile reflects our view that the debt-to-EBITDA ratio will remain

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 Majid Al Futtaim Holding LLC

below 4.5x and EBITDA interest coverage above 3.8x. These ratios stood at 3.6x and 5.0x, respectively, on Dec. 31,
2018. High capex and discretionary acquisitions will likely put free operating cash flow under pressure in 2019-2020.
However, MAF Holding's ability to curtail capex at short notice (two months) and at a manageable cost
(reimbursement of contractors' demobilization costs), combined with prudent liquidity management, provides
additional ratings support, in our opinion.

We classify MAF Holding's cash flow as volatile relative to that of other real estate rental companies, because
30%-35% of its EBITDA stems from the less-predictable retail business. We therefore adjust our initial financial risk
assessment of modest downward to intermediate.

Financial summary
Table 2
Majid Al Futtaim Holding LLC--Financial Summary
Industry sector: Real estate investment trust or company
--Fiscal year ended Dec. 31--

2018 2017 2016 2015 2014

Rating history BBB/Stable/A-2 BBB/Stable/A-2 BBB/Stable/A-2 BBB/Stable/A-2 BBB/Stable/A-2

(Mil. AED)
Revenues 34,655.0 32,274.0 29,908.8 27,343.3 25,223.6
EBITDA 5,339.0 4,800.8 4,655.6 4,224.8 4,067.6
FFO 4,234.9 3,738.1 3,718.2 3,412.3 3,158.7
Interest expense 1,064.1 993.7 937.8 775.4 813.7
Cash interest paid 1,034.1 977.7 872.5 725.2 834.8
Cash flow from operations 4,532.9 4,312.1 3,420.9 3,637.0 3,314.0
Capital expenditures 4,759.0 4,255.0 3,677.1 4,231.7 3,876.7
Free operating cash flow (226.1) 57.1 (256.2) (594.7) (562.7)
Discretionary cash flow (1,710.1) (416.4) (543.9) (1,085.2) (843.1)
Cash and short-term investments 1,516.0 1,131.0 1,262.5 1,394.3 1,049.9
Gross available cash 1,516.0 1,131.0 1,262.5 1,394.3 1,049.9
Debt 19,275.3 17,611.4 15,316.2 14,828.1 12,575.5
Equity 33,594.0 35,142.0 32,187.9 30,813.3 27,005.3

Adjusted ratios
EBITDA margin (%) 15.4 14.9 15.6 15.5 16.1
Return on capital (%) 6.8 6.4 7.7 9.4 9.1
EBITDA interest coverage (x) 5.0 4.8 5.0 5.4 5.0
FFO cash interest coverage (x) 5.1 4.8 5.3 5.7 4.8
Debt/EBITDA (x) 3.6 3.7 3.3 3.5 3.1
FFO/debt (%) 22.0 21.2 24.3 23.0 25.1
Cash flow from operations/debt (%) 23.5 24.5 22.3 24.5 26.4
Free operating cash flow/debt (%) (1.2) 0.3 (1.7) (4.0) (4.5)
Discretionary cash flow/debt (%) (8.9) (2.4) (3.6) (7.3) (6.7)

AED--UAE dirham. FFO--Funds from operations.

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 Majid Al Futtaim Holding LLC

Liquidity: Strong
We consider MAF Group's liquidity position to be strong under our criteria, and we calculate that the group's liquidity
sources should exceed liquidity needs by more than 1.5x over the next 12 months and more than 1.0x over the
following 12 months. As of Dec. 31, 2018, this ratio was over 2.0x.

Furthermore, we view as positive that 19 of MAF Holding's 21 fully owned and operational malls are currently
unencumbered and could be used as collateral for new debt in a stress scenario, subject to the negative pledge cap of
49% (compared with 4% as of Dec. 31, 2018). Additionally, secured debt comprised only 2.5% of undepreciated assets
as of Dec. 31, 2018.

In our view, MAF Holding's current liquidity profile is sufficiently robust to withstand deteriorating credit conditions in
Dubai, which allows us to rate it in line with its stand-alone credit profile despite such deteriorating credit conditions.

Principal Liquidity Sources Principal Liquidity Uses

• Cash and deposits of AED1.5 billion, as of Dec. 31,
2018.
• Committed unused credit lines of AED9.3 billion,
most of which are not due until 2023 or beyond.
• We expect the group's operating cash flow will be
between AED3.5 billion-AED3.8 billion annually
over the next two years.
• AED2.2 billion ($600 million) green sukuk issued in
May, 2019.
• Short-term debt maturities of AED2.2 billion
including an AED1.8 billion bond which matured in
July 2019.
• Capex of AED3.5 billion-AED4.0 billion, according
to our forecast, over half of which we consider
discretionary and consequently could be delayed or
canceled at short notice (one month).
• AED1.2 billion-AED1.4 billion of dividend and
hybrid-related payments (we consider 50% of hybrid
coupons to be dividends).

Debt maturities
• 2019: AED2.2 billion

• Thereafter: AED 11.9 billion

Covenant Analysis
Compliance Expectations
MAF Holding has to comply with three covenants, stipulating a minimum net worth of $4.1 billion, minimum interest
coverage of 2.5x, and maximum debt to equity of 0.7x.

Requirements
Headroom under the covenants is adequate, with MAF Holding's net worth at $9.6 billion, interest coverage at 10.3x,
and net debt to equity a 0.36x on Dec. 31, 2018.

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 Majid Al Futtaim Holding LLC

Environmental, Social, And Governance

MAF Holding was an early user of the term "sustainability" in the Middle East and North Africa (MENA) region,
and has continued to make strong progress. In 2010, the company developed a sustainability strategy, and recently
announced the adoption of 11 sustainable business commitments (contributing to 10 UN Sustainable Development
Goals), including a net positive target in carbon and water for all operational, tenant, and development activities by
2040. MAF Holding actively seeks to reduce its carbon footprint, and recently installed solar panels at four malls. It
also has a well-established program for water recycling and waste management.

City Centre Me'aisem, which opened in 2015, is the first Leadership in Energy and Environmental Design (LEED)
platinum-certified shopping mall in the MENA region. Kempinski Hotel Mall of the Emirates, opened in 2006, is the
first 5-star hotel in the region to achieve LEED for Existing Buildings: Operations and Maintenance (EBOM) Silver
accreditation. All 13 of the company's hotels are either LEED or EarthCheck certified.

In terms of social initiatives, the company contributes to the community; for example, refurbishing a school for
underprivileged children in Egypt, and building mosques in the neighbourhood. It also very actively manages its
human capital, seeing its people as a key strength, and running several schemes to empower its employees (such
as an employee conditions policy focused on employment conditions and human rights across its value chain, and
leadership development programs run by its Leadership Institute). In addition, MAF Holding's operating
companies all actively support local supply chains and businesses.

MAF Holding governance standards are much more robust than those of regional peers; they are more comparable
to those upheld at global retail real estate investment trusts. Although the group is controlled by a single
shareholder, Mr. Majid Al Futtaim, the risks associated with the concentrated shareholder structure have been
mitigated by the adoption of a comprehensive set of enterprise risk-management policies, and the presence of
experienced and reputable board members both at the holding and operating company levels. Despite being a
family-owned business, the company has voluntarily adopted the principles of the U.K.'s corporate governance
code for listed companies. The company's transparency about operations, its clear and comprehensive investment
strategies, and its financial policies enhance our view of governance.

Issue Ratings - Subordination Risk Analysis

Capital structure
As at Dec. 31, 2018, MAF Holding's capital structure comprises a $500 million bond due in July 2019, an $800 million
bond due in May 2024, and a $500 million sukuk due in November 2025. During 2019, the company issued $600
million of green sukuk due in 2029.

The capital structure also includes two hybrid capital securities totaling $900 million.

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Analytical conclusions
We rate MAF Holding's senior unsecured instruments 'BBB', in line with the issuer credit rating. This is because the
proportion of the company's secured debt that could create structural subordination for the senior unsecured
debtholders is close to 2.5%, while our threshold for notching issue ratings downward from issuer credit ratings is 40%.

We consider the hybrid capital securities to have intermediate equity content until the first call dates in 2022 ($500
million) and 2026 ($400 million), because they meet our hybrid capital criteria in terms of their subordination,
permanence, and optional deferability during this period.

We arrive at our 'BB+' issue rating on the hybrid capital securities by notching down from our 'BBB' long-term issuer
credit rating (ICR) on MAF Holding. The notching reflects our view that there is a relatively low likelihood that MAF
Holding would defer interest payment on the hybrid capital securities. If our view changes, however, we could
significantly increase the number of notches deducted from the ICR to derive the issue rating. In addition, we would
apply a two-notch deduction for subordination if we lowered the ICR on MAF Holding to speculative grade ('BB+' or
below).

Reconciliation
Table 3
Reconciliation Of Majid Al Futtaim Holding LLC Reported Amounts With S&P Global Ratings' Adjusted
Amounts (Mil. AED)
--Fiscal year ended Dec. 31, 2018--

Majid Al Futtaim Holding LLC reported amounts

S&P Global
Ratings' Cash flow
Shareholders' Operating Interest adjusted from
Debt equity EBITDA income expense EBITDA operations Dividends
Reported 14,067.0 34,650.0 4,571.0 460.0 460.0 5,339.0 4,725.0 232.0

S&P Global Ratings'

adjustments
Cash taxes paid -- -- -- -- -- (70.0) -- --
Cash taxes paid - Other -- -- -- -- -- -- -- --
Cash interest paid -- -- -- -- -- (625.0) -- --
Operating leases 4,128.9 -- 699.0 301.1 301.1 (301.1) 397.9 --
Intermediate hybrids 1,646.0 (1,646.0) -- -- 108.0 (108.0) (108.0) (108.0)
reported as equity
Postretirement benefit 722.0 -- -- -- -- -- -- --
obligations/deferred
compensation
Accessible cash & liquid (1,288.6) -- -- -- -- -- -- --
investments
Capitalized interest -- -- -- -- 147.0 -- -- --
Dividends received from -- -- 69.0 -- -- -- -- --
equity investments
Nonoperating income -- -- -- 206.0 -- -- -- --
(expense)

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 Majid Al Futtaim Holding LLC

Table 3
Reconciliation Of Majid Al Futtaim Holding LLC Reported Amounts With S&P Global Ratings' Adjusted
Amounts (Mil. AED) (cont.)
Reclassification of -- -- -- -- -- -- (482.0) --
interest and dividend
cash flows
Noncontrolling -- 590.0 -- -- -- -- -- --
interest/minority interest
D&A - Asset valuation -- -- -- 1,166.0 -- -- -- --
gains/(losses)
D&A - Impairment -- -- -- 1,442.0 -- -- -- --
charges/(reversals)
Interest expense - -- -- -- -- 48.0 -- -- --
Derivatives
Dividends - Other -- -- -- -- -- -- -- 1,360.0
Total adjustments 5,208.3 (1,056.0) 768.0 3,115.1 604.1 (1,104.1) (192.1) 1,252.0

S&P Global Ratings'

adjusted amounts

Cash flow
Interest Funds from from Dividends
Debt Equity EBITDA EBIT expense operations operations paid
Adjusted 19,275.3 33,594.0 5,339.0 3,575.1 1,064.1 4,234.9 4,532.9 1,484.0

AED--UAE dirham.

Ratings Score Snapshot

Issuer Credit Rating
BBB/Stable/A-2

Business risk: Satisfactory

• Country risk: Moderately high
• Industry risk: Low
• Competitive position: Satisfactory
Financial risk: Intermediate
• Cash flow/Leverage: Intermediate
Anchor: bbb

Modifiers
• Diversification/Portfolio effect: Neutral (no impact)
• Capital structure: Neutral (no impact)
• Financial policy: Neutral (no impact)
• Liquidity: Strong (no impact)
• Management and governance: Strong (no impact)

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 Majid Al Futtaim Holding LLC

• Comparable rating analysis: Neutral (no impact)

Related Criteria
• Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019

• General Criteria: Methodology For National And Regional Scale Credit Ratings, June 25, 2018

• Criteria - Corporates - Industrials: Key Credit Factors For The Real Estate Industry, Feb. 26, 2018

• General Criteria: Methodology And Assumptions: Assigning Equity Content To Hybrid Capital Instruments Issued
By Corporate Entities And Other Issuers Not Subject To Prudential Regulation, Jan. 16, 2018

• General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017

• General Criteria: Guarantee Criteria, Oct. 21, 2016

• General Criteria: Methodology For Rating Sukuk, Jan. 19, 2015

• Criteria | Corporates | General: Methodology And Assumptions: Liquidity Descriptors For Global Corporate
Issuers, Dec. 16, 2014

• General Criteria: Group Rating Methodology, Nov. 19, 2013

• General Criteria: Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013

• Criteria | Corporates | General: Corporate Methodology, Nov. 19, 2013

• Criteria - Corporates - Industrials: Key Credit Factors For The Retail And Restaurants Industry, Nov. 19, 2013

• General Criteria: Ratings Above The Sovereign--Corporate And Government Ratings: Methodology And
Assumptions, Nov. 19, 2013

• General Criteria: Methodology: Industry Risk, Nov. 19, 2013

• General Criteria: Methodology: Management And Governance Credit Factors For Corporate Entities And Insurers,
Nov. 13, 2012

• General Criteria: Criteria Clarification On Hybrid Capital Step-Ups, Call Options, And Replacement Provisions, Oct.
22, 2012

• Criteria - Financial Institutions - General: Methodology: Hybrid Capital Issue Features: Update On Dividend
Stoppers, Look-Backs, And Pushers, Feb. 10, 2010

• General Criteria: Use Of CreditWatch And Outlooks, Sept. 14, 2009

• Criteria - Insurance - General: Hybrid Capital Handbook: September 2008 Edition, Sept. 15, 2008

Related Research
• Dubai Real Estate Downturn To Continue: Projections And Ratings Impact, Feb. 18, 2019

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 Majid Al Futtaim Holding LLC

Business And Financial Risk Matrix

Financial Risk Profile

Business Risk Profile Minimal Modest Intermediate Significant Aggressive Highly leveraged

Excellent aaa/aa+ aa a+/a a- bbb bbb-/bb+

Strong aa/aa- a+/a a-/bbb+ bbb bb+ bb
Satisfactory a/a- bbb+ bbb/bbb- bbb-/bb+ bb b+
Fair bbb/bbb- bbb- bb+ bb bb- b
Weak bb+ bb+ bb bb- b+ b/b-
Vulnerable bb- bb- bb-/b+ b+ b b-

Ratings Detail (As Of July 25, 2019)*

Majid Al Futtaim Holding LLC
Issuer Credit Rating BBB/Stable/A-2
Gulf Cooperation Council Regional Scale gcAA/--/gcA-1+
Issuer Credit Ratings History
05-Apr-2011 BBB/Stable/A-2
24-Dec-2018 Gulf Cooperation Council Regional Scale gcAA/--/gcA-1+
30-Sep-2014 gcAA/--/gcA-1
05-Apr-2011 gcA+/--/gcA-1
*Unless otherwise noted, all ratings in this report are global scale ratings. S&P Global Ratings’ credit ratings on the global scale are comparable
across countries. S&P Global Ratings’ credit ratings on a national scale are relative to obligors or obligations within that specific country. Issue and
debt ratings could include debt guaranteed by another entity, and rated debt that an entity guarantees.

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