Abu Dhabi-headquartered Aldar Properties has been upgraded to investment grade by rating agency Standard & Poor’s.

The agency revised its view of the property developer, saying its financial profile had improved due to the reduction of its debt burden and an increase in recurring rental income.

Aldar has opened a number of new properties recently which have contributed to the increased rental income. Yas Mall in Abu Dhabi opened in November and is expected to contribute more than AED400m ($108.9m) per year to Aldar’s recurring income.

Aldar’s net debt to equity stood at 38 per cent at the end of September 2014, a reduction from the 65 per cent recorded at the end of 2013. The company has total assets valuing AED38.21bn.