S&P rates ACWA Power debt BBB-

S&P said it assigned a preliminary BB+ rating to ACWA Power Management and Investments One Ltd. (APMI1), a limited-purpose entity of International Co. for Water and Power Projects.

The agency also said it assigned a preliminary BBB- rating to APMI1's debt with a recovery rating of 2, indicating 90% to 100% expected default recovery.

The ratings reflect the constraints on the company related to the Dubai International Financial Centre jurisdiction, S&P said.

The outlook is stable.

The ratings are underpinned by the relatively robust operating performance of the companies in APMI1's portfolio, the agency added.

The company's plant portfolio comprises contracted power and water capacity representing what is about 23% of the total contracted power capacity and about 34% of the contracted desalinated water capacity in Saudi Arabia, S&P explained.

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