Moody's rates Tabreed sukuks Baa3

Moody's Investors Service said it assigned a Baa3 long-term issuer rating to National Central Cooling Co. PJSC (Tabreed).

Moody's also said it assigned a Baa3 rating to the proposed senior unsecured sukuk certificates to be issued by Tabreed Sukuk SPC Ltd., a special purpose vehicle established by Tabreed in the United Arab Emirates.

The outlook is stable.

The ratings are supported by the company's strong cash flow resilience because of long-term fixed-charge contracts, low operating risk levels and strong competitive positions in growing Gulf Cooperation Council markets, Moody's said.

The ratings are constrained by Tabreed's geographical concentration in the Middle East, relatively high level of customer concentration and high dividends, the agency said.

Tabreed benefits from strong cash flow resilience because of long-term contractual arrangements, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.