Moody’s: ACWA Power bonds Baa3

Moody's Investors Service said it assigned provisional long-term Baa3 ratings to fully amortizing senior secured bonds due 2039 to be issued by ACWA Power Management and Investments One Ltd.

The agency also assigned Baa3 ratings to the trust certificates due 2039 scheduled to be redeemed semi-annually in installments, which will be issued by ACWA Power Sukuk SPC Ltd.

The proceeds will ultimately be invested in International Co. for Water and Power Projects group companies, Moody’s said.

The outlook is stable.

The ratings reflect the group’s stable and predictable revenue stream, underpinned by long-term offtake contracts with a government-owned entity and the use of proven technologies from reputable suppliers, the agency said.

The ratings also consider that the majority of projects achieved construction completion some time ago, Moody’s said.

The ratings are constrained by the structural subordination of the bonds and sukuk relative to existing project financing at the individual projects, the agency said.

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