S&P rates ACWA Power sukuk BBB-

S&P said it assigned a preliminary BBB- rating to the dollar-denominated senior secured sukuk (trust certificates) issued by ACWA Power Sukuk SPC Ltd.

The preliminary rating on the trust certificates is based on draft documentation, S&P said.

Should the final documentation differ substantially from the draft version, the agency said it could assign a different final rating to the trust certificates.

The sukuk certificates will enter into a restricted mudaraba agreement and a commodity murabaha agreement with ACWA Power Management and Investments Two Ltd. (APMI2).

APMI2 is a limited-purpose entity 100% owned by International Co. for Water and Power Projects (ACWA Power).

The preliminary BBB- issue rating reflects a view that the transaction fulfils the five conditions of the criteria for rating sukuk, S&P said.

APMI2 will provide sufficient and timely contractual obligations for the repayment of the principal and periodic distribution amounts through the murabaha agreement, the agency said.

APMI2's obligations under the murabaha agreement are irrevocable, S&P said, and these obligations will rank pari passu with APMI2's other senior unsecured financial obligations.

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