Apr 12 2012
|more articles from|
Fitch Affirms Tourism and Development Investment Company PJSC at 'AA'
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.
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.
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.
Bashar Al Natoor
+971 4 4081809
Fitch Ratings Limited
DIFC, Gate Village
PO Box 506527
+90 (0) 212 279 1011
+44 20 3530 1296
Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: email@example.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
© Copyright Zawya. All Rights Reserved.