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Thursday, 4 March 2010

Abu Dhabi Companies Have Credit Rating Cut at Moody’s

Abu Dhabi companies, among the biggest borrowers in the Gulf region last year, were downgraded at Moody’s Investors Service today, citing the lack of an “explicit formal agreement” for government support.

Mubadala Development Co. and International Petroleum Investment Co. were cut to Aa3 from Aa2, Tourism Development & Investment Co. to A1 from Aa2, Abu Dhabi National Energy Co., also known as Taqa, to A3 from Aa2 and Dolphin Energy Ltd. to A1 from Aa3, Moody’s said in a report today. Emirates Telecommunications Co. was cut to Aa3 from Aa2. Aldar Properties PJSC was downgraded two levels to Ba1, below investment grade, and given a negative outlook, Moody’s said.

Moody’s decided to introduce a "moderate" distinction between the ratings of Mubadala, IPIC and TDIC “and that of the sovereign given that no explicit formal agreement exists obligating the government to support them under all circumstances,” Philipp Lotter and David Staples wrote.