Moody's rates Mubadala Aa2

Moody's Investors Service said it assigned long-term local- and foreign-currency issuer ratings of Aa2 to Mubadala Development Co. PJSC, the corporate economic development arm of the government of Abu Dhabi.

The outlook is stable.

Despite having the legal status of a joint stock company, Mubadala's ownership structure, day-to-day management and strategic mandate resemble that of a government development agency, Moody's said. Therefore it is viewed as a quasi-sovereign issuer, the agency said.

Abu Dhabi owns many entities whose primary role is to invest fiscal surpluses abroad, thus providing capital diversification to Abu Dhabi's economy, Moody's said.

By contrast, Mubadala's core mandate is to diversify Abu Dhabi's domestic economy by developing and facilitating new industries, thus giving it a predominantly domestic focus, the agency said.

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