Fitch revises Tabreed outlook to stable

Fitch Ratings said it revised the outlook on National Central Cooling Co. PJSC's (Tabreed) to stable from negative and affirmed the long-term foreign-currency issuer default rating. Fitch also affirmed Tabreed Sukuk SPC Ltd.'s senior unsecured notes at BBB.

“The revision of the outlook reflects the strong deleveraging, supported by a strong business risk profile. We expect funds from operations (FFO) net leverage to be 4.4x by end-2022, and to average 4.2x between 2022 and 2025, which is within our negative rating sensitivities at BBB of 4.5x. Additional debt-funded acquisitions leading to leverage increasing above the rating sensitivities could result in a one-notch downgrade, especially in the absence of any credit-supportive measures from shareholders,” Fitch said in a press release.

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