Agency reviews ratings of Abu Dhabi government-linked firms

10 December 2009

Moody’s to gauge levels of state support

Ratings agency Moody’s Investors Service says it is reviewing the ratings of seven Abu Dhabi government-linked companies as it reassesses the likelihood of them receiving state support in the wake of Dubai distancing itself from the debt on its government-backed firms.

The reviews will affect the ratings of Abu Dhabi National Energy Company (Taqa), Mubadala Development Company, Tourism Development & Investment Company (TDIC), International Petroleum Investment Company (Ipic), Emirates Telecommunications Company (Etisalat), Dolphin Energy and Aldar.

Moody’s says even if the review concludes that the likelihood of state support is still high, it could still downgrade the firms.

According to a Moody’s statement, during the review it will “engage in discussions with the respective government officials and issuers regarding their policies and positions on each of the issuers to assess whether these ratings continue to be positioned appropriately.”

The agency is the first to act on the ratings of other government-linked firms outside Dubai, after the emirate’s refusal to guarantee the debt of Dubai World.

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