Moody’s assigns Aa2 rating to Abu Dhabi’s $10 bln triple-tranche bond
Saturday, 10 05 2019, Category: Islamic Insurance, Country: Egypt
Moody’s Investors Service assigned Abu Dhabi’s $10 billion three-tranche bond a ‘Aa2’ senior unsecured rating, citing the emirate’s “Very High (-)” economic strength.
The rating is at the same level as the long-term issuer rating of the Abu Dhabi government, which is supported by a robust economic outlook, very large hydrocarbon reserves, and “superior” infrastructure, Moody’s said in a statement on Tuesday.
“The rating also reflects the ‘High (+)’ institutional strength, taking into account the emirate’s strong institutional framework and effectiveness, which is counterbalanced by high inflation volatility and significant transparency issues,” Moody’s added.
The ratings agency mentioned that prospects of economic diversification from hydrocarbons and a decline in the government’s dependence on oil revenues could potentially prompt an upgrade of Abu Dhabi’s current rating.