US bond credit ratings agency Moody’s Investors Service has upgraded its ratings for state-owned Abu Dhabi firms International Petroleum Investment Company (Ipic), Mubadala Development Company and Tourism Development & Investment Company (TDIC).

All three companies are tasked with driving the diversification of the emirate’s crude-exports dominated economy into other sectors.

“The Abu Dhabi government has not only made public statements of very high support for its owned entities, but has also set over time a track record of material support for highly visible and strategic projects in the emirate,” says Martin Kohlhase, a Dubai-based senior credit officer and local market analyst at Moody’s.

“Ipic, Mubadala and TDIC remain intrinsically linked to the government of Abu Dhabi by virtue of being wholly-owned entities and vehicles of public policy.”

The long-term issuer rating for Ipic – a company investing in downstream and petrochemicals assets in the UAE and overseas – has been raised to Aa2 from Aa3.

Moody’s has also increased its rating for diversified investment vehicle Mubadala to Aa2 from Aa3, while TDIC’s rating has been upgraded to Aa2 from a previous rating of A1. The outlook on all ratings is stable.

The ratings agency says the Abu Dhabi government’s propensity to support these government-related entities (GREs) remains very strong, and is backed by accumulated savings from hydrocarbon revenues.

Due to the level of state ownership and mandate, the ratings for these GREs are not likely to exceed that of the government of Abu Dhabi, which is also evaluated at Aa2.

Moody’s says its outlook for the companies would only change if there is a shift in public policy affecting the provisioning of extraordinary funding and ownership.

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