Moody’s applies Baa2 to Equate Sukuk program

Moody's Investors Service said it assigned a provisional Baa2 rating to the $2 billion trust certificate issuance program of Equate Sukuk SPC Ltd., a special purpose company established in the Dubai International Financial Centre and wholly owned by Equate Petrochemical Co. KSCC.

The outlook is stable.

The provisional Baa2 rating assigned to the program is at the same level as the senior unsecured issuer rating of Equate (Baa2 stable). Equate’s sister company, Kuwait Olefins Co. KSCC, has through the Master Trust Deed unconditionally and irrevocably guaranteed the payment and performance obligations of Equate that are stipulated in the relevant program transaction documents.

The alignment of the sukuk program rating with that of Equate's rating is because certificate holders are effectively exposed to the creditworthiness of the obligors for the periodic distributions (akin to coupon payments) and principal repayment of the sukuk, Moody’s said.

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