RAK capital's upcoming sukuk issue assigned 'A' rating, says S&P

Standard & Poor's Ratings Services said that it had assigned its 'A' credit rating to the upcoming sukuk being issued under the US$2 billion certificates (sukuk al-ijara) issuance program from RAK Capital.

As per the original rating of the program in May 2008, we expect all issuances of certificates under this program to be rated 'A'. The rating on the program (and any issuance under it) is thereby equal to, and fully reliant on, the rating on the Emirate of Ras Al Khaimah (A/Stable/A-1).

RAK Capital is a Cayman-based special-purpose entity established for this transaction. The transaction structure allows the Emirate of Ras Al Khaimah to raise funds on Sharia (Islamic principles) compliant terms, with better distribution and sales perspectives, rather than to distinguish its obligations under this transaction from those under a conventional bond.