Abu Dhabi's TDIC Sukuk trust certificates issuance program assigned 'AA' preliminary rating

Standard & Poor's Ratings Services today said it had assigned its preliminary 'AA' rating to TDIC Sukuk Ltd.'s certificates issuance program, under which it can issue up to US$1.45 billion certificates (sukuk al-ijara).

The rating is equal to, and is fully reliant on, the rating on Tourism Development and Investment Company (TDIC; AA/Stable/A-1+). The preliminary rating is based on information as of October 1, 2009. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

TDIC Sukuk Ltd. is a Cayman-based special-purpose vehicle (SPV) established for this transaction. The equalization of the program rating with the rating on TDIC is based on the obligation of TDIC to make rental and repurchase payments to TDIC Sukuk Ltd. that in our view should at all times enable the issuer to make full and timely periodic distribution and principal redemption payments on the certificates.