Mubasher: Moody's Investors Service has assigned an interim (P)Aa3 senior unsecured rating to the global medium-term note (MTN) programme proposed by the Arab Petroleum Investments Corporation (Apicorp), which was rated at “Aa3” with a “Stable” Outlook.
Moody's expects to assign a final rating to the notes to be issued under the MTN programme based on the closing of the issuance in addition to the review of the terms of the final transaction documents of each issuance, Moody’s said in an official statement on Monday.
“According to the preliminary transaction documents, the notes will be direct, unconditional, and unsecured obligations of APICORP, and will rank pari passu with all other outstanding unsecured and unsubordinated obligations of Apicorp. Therefore, the (P)Aa3 senior unsecured rating mirrors Apicorp's long-term issuer rating of Aa3 with a stable outlook,” Moody’s added.
Moody's clarified that the rating reflects high levels of capital adequacy and liquidity registered in Apicorp, in addition to very strong member support.
Apicorp’s capital adequacy is backed by strong capital position, moderate leverage, and manageable nonperforming assets, while the slide in oil prices from 2014 has only mildly weighed on the Apicorp's profitability.