S&P affirms Gold Sukuk floaters

Standard & Poor's said it affirmed its A senior unsecured debt rating on the $200 million floating-rate trust certificates due May 2010 issued by Gold Sukuk dmcc.

The agency said that Gold Sukuk is a special purpose entity established for this sukuk and that the proceeds of the issue are used to contribute to the capital of a joint venture (musharaka) formed between Gold Sukuk dmcc and Dubai Multi Commodities Centre Authority (A/stable/A-1, formerly Dubai Metals and Commodities Centre Authority), to finance the construction of three office towers in the DMCC free zone that in turn will be sold to a broad range of companies in the precious metals and commodities sectors.

According to S&P, the rating assigned to the trust certificates issued by Gold Sukuk is fully reliant on the credit rating on Dubai Multi Commodities Centre Authority while the equalization of the ratings is supported by the company's obligation to pay, in a timely manner, all amounts due under the sukuk's terms and conditions, should the joint venture fail to generate enough revenues for the service of the certificates.

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