Moody's upgrades ratings in Abu Dhabi
Outlook for IPIC, Mubadala and TDIC is all 'stable'
Moody’s has upgraded all the long-term issuer ratings to Aa2 for International Petroleum Investment Company (IPIC) from Aa3; for Mubadala Development Company PJSC (Mubadala) from Aa3; and for Tourism Development and Investment Company PJSC (TDIC) from A1.
At the same time Moody's affirmed the P-1 short-term ratings for IPIC and Mubadala.
A statement said the outlook on all ratings is stable.
"The Abu Dhabi government has not only made public statements of very high support for its owned entities, but also set over time a track record of material support for highly visible and strategic projects in the emirate," explained Martin Kohlhase, a Moody's vice president -- senior credit officer and local market analyst based in Dubai.
Kohlhase added that "IPIC, Mubadala and TDIC remain intrinsically linked to the government of Abu Dhabi by virtue of being wholly owned entities and being vehicles of public policy".
Moody’s further notes that the Government of Abu Dhabi's (Aa2 stable) propensity to support its GRIs remains very strong, backed by accumulated savings from hydrocarbon revenues.
Following a spending review in 2011, Abu Dhabi has remained committed to highly visible public infrastructure projects and social welfare programmes, some of which are implemented by its GRIs.
In addition, the Department of Finance (DoF) has repeatedly issued public statements of explicit support for IPIC, Mubadala and TDIC.