Fitch rates EIG Pearl notes A

Fitch Ratings said it assigned EIG Pearl Holdings Sarl a long-term issuer default rating of A and gave an expected A rating to its planned senior secured notes.

The proceeds will be used to partly refinance a $10.8 billion bridge facility used as part of the issuer's acquisition of a 49% stake in Aramco Oil Pipelines Co. (AssetCo).

“The ratings are based on the contractual structure between the issuer, AssetCo and the Saudi Arabian Oil Co. (Saudi Aramco; A/stable). The issuer owns 49% of AssetCo, which owns usage lease rights to a stabilized crude oil pipeline network in Saudi Arabia. Saudi Aramco owns the remaining 51% of AssetCo, operates the pipeline network and pays a tariff for its usage. This structure means the ratings are linked to Saudi Aramco's rating rather than being driven by the issuer's financial metrics, which are adequate,” Fitch said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.