Dubai - Mubasher: Moody's Investors Service has assigned a “Baa3” long-term issuer rating to the National Central Cooling Company (Tabreed), according to a recent report.
The New York-based ratings agency has also placed a “Baa3” instrument rating to Tabreed’s proposed senior unsecured sukuk certificates which will be issued by Tabreed Sukuk, a special purpose vehicle established by Tabreed in the UAE.
Moody’s said that the outlook on all ratings is “Stable”, the report added, noting that this is the first time for Moody's to assign a rating to Tabreed, which is listed on the Dubai Financial Market (DFM).
Moody’s noted that Tabreed's Baa3 rating is endorsed by the company's “strong cash flow resilience because of long-term fixed charge contracts; low operating risk levels, with most variable costs being passed through; strong competitive positions in growing Gulf Cooperation Council (GCC) markets; and complementary shareholder base.”
