Fitch rates Emirates Aluminum bonds A-

Fitch Ratings said it assigned Emirates Aluminium Co. Ltd.'s proposed issue of $1 billion series A due 2038 and $1 billion series B due 2028 senior secured bonds expected A- ratings. The final ratings are contingent on the receipt of final documents.

The outlook is stable.

The ratings reflect strong underlying economics of the joint venture aluminum project that is backing the bonds. Fitch said the project benefits from some implied government support due to its strategic nature and maintenance of ownership clause.

The project is constrained by the long tenor of the bonds, which don't amortize within their term, the agency said. But, Fitch said it takes comfort from the technical adviser's view that many smelters have been operating for more than 30 years. There is no major technological change expected in the industry that could significantly affect the project's competitiveness over the bond tenor, the agency said.

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