Monday 2 March 2009

Moody's assigns Aa2 rating to TDIC (UAE)

DIFC, March 02, 2009: Moody's Investors Service has assigned Aa2 long-term local and foreign currency issuer ratings to the Tourism Development and Investment Company PJSC. The outlook is stable. These are the first ratings that Moody's assigns to TDIC.

TDIC was established in 2005 as a corporate entity and as the de facto implementation agent by decree of the Government of Abu Dhabi with a clear strategic mandate to develop the Emirates' tourism industry. The company is currently developing around 60 residential, hospitality and cultural projects with an expected total cost of AED 100 billion (USD 27 billion). In order to carry out its mandate there will be significant funding requirements which are expected to be largely met by third-party debt, land sales and ongoing government subsidies and funding. Leverage is expected to peak in 2010, but should subside thereafter when developed residential units will be sold. Given its primary mandate to develop the local tourism industry, the degree of exposure to the real estate market is however relatively limited compared to regional peers.

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