Fitch gives Galaxy Pipeline, notes AA

Fitch Ratings said it assigned Galaxy Pipeline Assets BidCo Ltd. and its proposed notes of $4 billion-$8 billion due between 2028 and 2040 an expected issuer default rating and expected long-term AA rating, respectively.

“The AA(EXP) rating of BidCo reflects the stable and predictable dividend stream received from Adnoc Gas Pipeline Assets LLC (AssetCo),” Fitch said in a press release.

AssetCo entered into a 20-year agreement with Abu Dhabi National Oil Co. to lease a network of 38 onshore gas pipelines in Abu Dhabi. AssetCo contracted the pipeline usage rights and operations to Adnoc under a pipeline use and operation agreement coterminous with the lease agreement. Under the agreement, Adnoc provides cash flow certainty through a minimum volume commitment, assumes all operating and capital costs on the network, including all insurance and remediation obligations, Fitch said.

The outlook is stable.

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