S&P affirms TAQA

Standard & Poor's said it affirmed the AA- long-term and A-1+ short-term corporate credit ratings of Abu Dhabi National Energy Co. PJSC (TAQA) following the company's announcement that it plans to acquire PrimeWest Energy Trust for C$5 billion, funded primarily by debt.

The affirmation reflects the agency's expectation of ongoing implicit sovereign support for TAQA given the company's importance to the Emirate of Abu Dhabi (AA/stable/A-1+) and its status as a government-related entity.

Following the PrimeWest acquisition, up to one-half of the company's forecast EBITDA will likely be generated outside of the United Arab Emirates. S&P said this is consistent with the company's originally stated investment policy to undertake international infrastructure investments, and the agency expects there will be no major changes in the implicit government support to the company.

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