S&P rates Bahrain Mumtalakat bond A

Standard & Poor's said it will assign an A debt rating to the proposed senior unsecured dollar bond to be issued by government-owned Bahrain Mumtalakat Holding Co.

The upcoming bond will be Bahrain Mumtalakat's first foray into the international capital markets and the proceeds of the bond will assist it to consolidate and enhance its debt and financing strategy, which previously employed shorter-term bank lines and regionally syndicated loan facilities, the agency said.

The ratings reflect that the company is fully owned and controlled by the Kingdom of Bahrain, S&P said. Although the government does not formally guarantee its financial liabilities, the agency said it equalizes the ratings because it believes there is an almost certain likelihood that the Bahraini government would provide support in the event of financial distress.

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