Fitch rates Galaxy Pipeline notes AA

Fitch Ratings said it assigned Galaxy Pipeline Assets BidCo Ltd.'s proposed issuance of $1.75 billion 2.16% series D notes due March 2034 and $2.17 billion 2.94% series E notes due September 2040 expected AA ratings.

“The proposed notes AA(EXP) ratings reflect the stable and predictable dividend stream received from Adnoc Gas Pipeline Assets LLC (AssetCo). AssetCo entered into a 20-year agreement with Abu Dhabi National Oil Co. (Adnoc, AA/stable) to lease a network of 38 onshore gas pipelines in Abu Dhabi. In turn, AssetCo has contracted the pipeline usage rights and operations to Adnoc under a pipeline use and operation (U&O) agreement coterminous with the lease agreement. Under the U&O agreement, Adnoc, a financially strong counterparty, 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 in a press release.

The outlook is stable.

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