Abu Dhabi – Mubasher: Moody's Investors Service (Moody's) has affirmed the Aa3 ratings of Abu Dhabi National Energy Company (TAQA) and the A3 ratings of General Holding Corporation (SENAAT), with a stable outlook for TAQA and a negative outlook for SENAAT.
The global rating agency has also withdrawn TAQA's baa1 baseline credit assessment (BCA) and SENAAT's ba1 BCA because it no longer classifies TAQA and SENAAT as government-related issuers (GRI), according to a recent press release.
This rating has followed Moody's assignment of Aa2 ratings to TAQA and SENAAT's parent company, Abu Dhabi Developmental Holding Company (ADQ).
Wholly owned by the Abu Dhabi government, ADQ owns 98.6% of TAQA and 100% of SENAAT.
TAQA's standalone assessment is attributed to the stable and transparent regulatory framework for the transmission and distribution of electricity and water in Abu Dhabi, the cost-recovery mechanisms of the regulatory framework, and the timeliness of subsidy payment.
The assessment is also supported by the low business risk profile of the company's power and water activities.
Meanwhile, the issuer rating of SENAAT shows the company's continued strategic importance to ADQ.
The negative outlook on SENAAT's ratings reflects the challenging operating environment facing its subsidiaries, alongside expectations of not going back to pre-COVID levels before 2022.
