Moody’s gives Oman certificates Baa1

Moody's Investors Service said it assigned a rating of Baa1 to the dollar-denominated certificates issued by Oman Sovereign Sukuk SAOC, a special purpose vehicle incorporated in Oman and wholly owned by the Government of Oman.

The payment obligations associated with these certificates will be direct obligations of the Government of Oman.

On June 29, the Government of Oman via Oman Sovereign Sukuk priced $500 million of trust certificates with a profit rate of 3˝% per annum, payable semiannually. The certificates are based on an al-Ijara structure and issued under a private placement. The tenor is six years with maturity date of July 14, 2022. Principal will be repaid via three equal repayments at the end of the 48th month, 60th month and 72nd month from the issue date (July 14).

Moody’s said the Baa1 rating assigned to the certificates is at the same level as the long-term issuer ratings of the Government of Oman, as the sukuk certificate holders will: (a) Effectively be exposed to Oman's senior credit risk; (b) not be exposed to the risk of performance of the portfolio assets relating to the certificates; (c) will not have any preferential claim or recourse over the assets, or rights to cause any sale or disposition of the assets except as expressly provided under the transaction documents; and (d) only have rights against the Government of Oman, ranking pari passu with other senior unsecured obligations as provided in the transaction documents.

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