Fitch: Mumtalakat unchanged

Fitch Ratings said it is unlikely that there will be a rating impact on Mumtalakat Holding Co. from Bahrain government's plan to inject more than $1 billion into its 100% subsidiary Gulf Air.

Fitch said it continues to expect that the capital injection and any additional material financial support to Gulf Air will be assumed directly by the government via Mumtalakat.

The agency said that Gulf Air's historical operating losses were a major financial burden on Mumtalakat, given the latter's material liquidity assistance thus far to the airline, of about $450 million in 2008 and $525 million in 2009.

Gulf Air did not indicate when and how the additional funds would be provided. Nevertheless, if Mumtalakat were to raise substantial debt on behalf of its subsidiaries or further guarantee subsidiaries' debt, it would be considered as a negative credit factor, Fitch said.

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