Nov 26 - Standard & Poor's Ratings Services said today it has assigned its
'AA' long-term debt rating to two proposed senior unsecured Eurobonds and one
proposed U.S.-dollar bond to be issued by Abu Dhabi government-owned
International Petroleum Investment Company GMTN Ltd. (IPIC GMTN)
IPIC GMTN is a special-purpose entity that is a wholly-owned subsidiary of
100% state-owned Abu Dhabi-based IPIC (AA/Stable/A-1+). The entity was
established for the issuance of notes under its guaranteed global medium-term
note program. The payment of amounts due under this program is unconditionally
and irrevocably guaranteed by IPIC.
The ratings on IPIC, which is fully owned and controlled by the Emirate of Abu
Dhabi (AA/Stable/A-1+), reflect our assessment of IPIC under our criteria for
government-related entities. The Abu Dhabi government has declared its "full
and unconditional" support for IPIC. Therefore, we equalize the ratings on
IPIC with those on Abu Dhabi because we believe that there is an "almost
certain" likelihood that the Abu Dhabi government would provide timely and
sufficient extraordinary support to IPIC in the event of financial distress.
Notably, this assessment on IPIC remains in place following recent discussions
of a review of Abu Dhabi's debt-guarantee policy.
IPIC's public-policy role is to implement the government's long-term
development strategy as outlined in its Economic Vision 2030. The company
manages investments to develop the hydrocarbon and petrochemical industries,
as well as to implement strategic national projects with a view to securing
demand for Abu Dhabi's oil. This, coupled with IPIC's operational proximity to
the Abu Dhabi government and repeated governmental capital increases, leads us
to conclude that the government would be willing to provide substantial
ongoing support to IPIC's operations and to intervene in a timely manner if
the company were to require extraordinary financial support.
RELATED CRITERIA AND RESEARCH
-- Rating Government-Related Entities: Methodology And Assumptions, Dec.
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