Oct. 17 (Bloomberg) -- The yield on Emaar Properties PJSC’s Islamic bonds fell to the lowest level in more than three weeks as Moody’s Investors Service raised the company’s rating by one step to Ba3, the third-highest non-investment grade.

The rate on the developer’s 8.5 percent sukuk maturing August 2016 dropped 25 basis points, or 0.25 of a percentage point, to 8.27 percent at 4:56 p.m. in Dubai, according to prices compiled by Bloomberg. Emaar Sukuk Ltd.’s rating was affirmed at B1, the fourth-highest junk rating, Moody’s said.

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net