Moody’s gives stable outlook to UAE corporates

Moody's Investors Service said it changed to stable from negative the outlook on the ratings of Mubadala Development Co. PJSC, International Petroleum Investment Co. and Emirates Telecommunications Group Co. PJSC. At the same time, Moody's has affirmed the Aa2 long-term issuer rating of Mubadala, the Aa2 long-term issuer rating of IPIC and the Aa3 long-term issuer rating of Etisalat.

The actions follow the recent change in outlook to stable from negative on both the government of the United Arab Emirates and the Government of Abu Dhabi, as well as the affirmation of their Aa2 long-term issuer ratings.

The agency said the ratings and outlook of both Mubadala and IPIC are aligned with that of the government of Abu Dhabi as Moody's believes that both these entities remain intrinsically linked to the government of Abu Dhabi by virtue of being wholly owned entities and being vehicles of public policy.

The rating actions on Etisalat factor Moody's recent rating action on the UAE. The agency said this linkage is predicated on Etisalat's standalone baseline credit assessment rating of a2, benefiting from uplift to the overall Aa3 long-term issuer rating attributed to Etisalat's 60% UAE ownership, coupled with strong support and very high dependence assumptions under Moody's government-related issuer rating methodology.

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