Moody's rates Gulf General notes B1

Moody's Investors Service said it assigned a B1 rating to the dollar-denominated senior notes due 2015 contemplated to be issued by Gulf General Investment Co. The proposed notes rank pari passu with existing senior unsecured debt of the company.

The outlook is negative.

The group plans to raise sufficient funds in order to refinance and reduce its existing secured short-term debt and for general corporate purposes, Moody's said.

The notes will be guaranteed by the company's main subsidiaries, Emirates National Lube Oil Co. Ltd. and Gulf Prefab Houses Factory LLC, the agency said.

Besides improving its debt maturity profile, the issuance should enhance the company's financial flexibility by reducing the amount of short term secured debt, Moody's said.

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