Moody's: No changes for TAQA

Moody's Investors Service said the acquisition of CMS Generation by Abu Dhabi National Energy Co. (TAQA) has no affect on TAQA's Aa3 ratings.

Following recent acquisitions by TAQA in the upstream oil and gas sector, the latest acquisition is expected to add about 4,300 megawatts of additional power generation capacity, which will strengthen the company's position as a developer and operator of independent water and power plants, Moody's said and is thus in line with the group's strategy.

The acquisition is likely to result in a further increase in debt for TAQA, the agency said, though still within the parameters underpinning its rating. Moody's said it views favorably that TAQA will have acquired full ownership of one of its subsidiaries.

Moody's said it expects TAQA to continue to undertake acquisitions totaling up to $3.5 billion over the medium term to diversify internationally.

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