Abu Dhabi – Mubasher: Moody's Investors Service on Wednesday announced that it placed Abu Dhabi National Energy Company’s (TAQA) ratings under review for upgrade.
This review will include the company's A3 long-term issuer rating and P-2 short-term issuer rating, according to a statement.
Moody’s said that its decision followed an offer from Abu Dhabi Power Corporation (ADPower), TAQA's main direct shareholder, to transfer most of its water and electricity assets across Abu Dhabi to TAQA.
“If successful, the transaction would greatly enhance TAQA's asset portfolio, adding transmission and distribution assets to its generation assets and creating a monopoly integrated utility in the emirate,” the rating agency noted.
The transaction is expected to be closed during the second half of 2020. It is pending review and approval by TAQA's board and shareholders, as well as by the Department of Energy and the Securities and Commodities Authority.
It is worth noting that TAQA’s net profits attributable to the parent company’s shareholders shrank to AED 234 million last year, compared to AED 398 million in 2018.
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