Fitch rates RAK sukuk A

Fitch Ratings said it assigned a senior unsecured rating of A to RAK Capital's $400 million 8% trust certificates (sukuk) due 2014.

RAK Capital is a special-purpose company incorporated in the Cayman Islands whose sole purpose is to make issuances under a $2 billion certificates program. The rating reflects Fitch's judgment that the sukuk can be considered an unconditional, unsubordinated and general obligation of the Government of Ras al Khaimah. The rating is therefore in line with Ras al Khaimah's A long-term foreign-currency issuer default rating, on which the outlook is stable.

Ras al Khaimah is the fourth-largest of the seven emirates making up the United Arab Emirates. The agency said its ratings are supported by a relatively diverse economy, rapid economic development, high per capita income and the government's prudent fiscal policy and strong balance sheet.

Although Ras al Khaimah has been hit by the recession in Dubai, Fitch said it has been able to relocate supplies of cement and other construction materials - a key sector - to stronger growing parts of the region.

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