| 05 Mar 2010 |
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Abu Dhabi stands by state firms
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Friday, Mar 05, 2010
Gulf News
Dubai The government of Abu Dhabi yesterday said it would continue to support government-owned business entities despite a downgrading by credit rating agency Moody's.
Moody's yesterday said it has downgraded seven Abu Dhabi government-owned issuers.
"We obviously disagree with the reasoning involved in a number of Moody's decisions, especially those concerning TDICTDIC
[Tourism Development and Investment Company], MubadalaMubadala, and IpicIpic [International Petroleum Investment Company]," Hamad Al Hurr Al Suwaidi, Undersecretary of Abu Dhabi's Department of Finance, said in a statement last evening. He asserted that there has been absolutely no change in any aspect of government support for those three companies. He also reiterated that the government continues to support Taqa. "The three companies — TDICTDIC, MubadalaMubadala, and IpicIpic — are 100 per cent government-owned and play a crucial role in the government's strategy for diversifying the economy. They are irreplaceable," he said.
"The Government controls the activities of these companies through the board of directors appointed by the government, each of which includes key members of Abu Dhabi's Executive Council — our cabinet. Therefore, in our view, it is impossible to differentiate between the government and any of these three entities in terms of credit risk."
"Not only does the government back these entities, as Moody's correctly pointed out, fully and unconditionally, we have a strong fiscal position and reserves that give us all the capacity we need to meet our commitments to these companies from our own resources."
auto parts
algeria on aabar radar
"Aabar's stake in the joint-venture company is 24.5 per cent of the company's capital for which Aabar's initial capital contribution is approximately four million," Aabar said in a statement on the Abu Dhabi bourse website. The Abu Dhabi investment firm and the Algerian government, which last year struck a deal with five German companies to make cars in Algeria, will jointly set up two more companies under the agreement, Aabar said.
— Zawya Dow Jones
Staff Report
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