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Fitch Affirms Tourism and Development Investment Company PJSC at 'AA'

Outlook Stable
Fitch Ratings-London/Dubai-12 April 2012: Fitch Ratings has affirmed Abu Dhabi-based Tourism Development & Investment Company PJSC's (TDIC) Long-term Issuer Default Rating (IDR) and senior unsecured rating at 'AA' and Short-term IDR at 'F1+'. The Outlook for the Long-term IDR is Stable.

The rating action affects both TDIC Finance Limited's global medium-term note programme with USD1bn of outstanding notes rated under Tourism Development & Investment Company PJSC and TDIC Sukuk Limited's Sukuk programme with USD1bn of outstanding trust certificates.

Fitch applied its parent and subsidiary rating linkage methodology in rating TDIC, concluding that a strong relationship exists between TDIC and the Emirate of Abu Dhabi ('AA'/Stable/'F1+'), which results in TDIC's rating being aligned with Abu Dhabi's sovereign rating. The primary rating driver for TDIC is its strong ties to the sovereign. The agency would not be able to rate this entity on a standalone basis due to its very limited operational assets.

"In December 2011 Abu Dhabi announced a second support package for Aldar in the form of asset purchases and debt relief worth around AED16.8bn (USD4.6bn). Aldar is not wholly state owned or a majority-owned government-related entity. This confirms Abu Dhabi's willingness and ability to support strategically important companies in which it has a stake," says Bashar Al Natoor, Director in Fitch's EMEA Corporates. "Fitch's assumption that strategically important, state-owned entities will be supported in times of need is reflected in its ratings of TDIC, Mubadala Development Company and International Petroleum Investment Company, which are aligned with Abu Dhabi's sovereign rating," Al Natoor added.

The government has consistently provided TDIC with substantial levels of direct financial support, including the provision of free land, recognised by TDIC as equity contributions. In 2011, the government provided monetary contributions totalling about AED 4.56 bn.

TDIC was established in 2005 through Emiri Decree No. 12. It is fully owned by the Government of Abu Dhabi, via Abu Dhabi Tourism & Culture Authority (ADTCA),, an authority 100% owned by the Government of Abu Dhabi (ADTCA), which is mandated to help drive economic diversification through supporting and expanding the Abu Dhabi tourism industry. Additionally, TDIC's 100% state ownership status is mandated by law and unlikely to change. It can only be dissolved after 2105 (100 years from its formation) by Emiri decree or if its mandate is deemed complete.

A change in Abu Dhabi's ratings would result in a change in TDIC's ratings. Any change by the government in its implied support, commitment or ownership of TDIC could also have negative rating implications for TDIC.

TDIC's mission, as set forth by the government, is to develop and manage Abu Dhabi's tourism investment zones and it is equipped to act as master developer for large scale tourism projects. TDIC also works closely with private sector developers, whose involvement is a key priority of the government's broader economic strategy. TDIC is in the early stages of development with large on-going project investment needs, and currently does not have significant operating assets. Hence, cash flow generation and profit are presently considered minimal.

Contacts:
Primary Analyst
Bashar Al Natoor
Director
+971 4 4081809
Fitch Ratings Limited
DIFC, Gate Village
PO Box 506527
Dubai, UAE
Secondary Analyst
Cigdem Cerit
Analyst
+90 (0) 212 279 1011
Committee Chairperson
Frederic Gits
Managing Director
+44 20 3530 1296
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com.

Additional information is available at www.fitchratings.com. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable criteria, 'Corporate Rating Methodology', dated 12 August 2011, are available at www.fitchratings.com.

© Press Release 2012

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