Moody’s, a global credit rating agency, has upgraded one of the UAE’s largest industrial investment holding companies, Abu Dhabi’s General Holding Corporation’s (Senaat) issuer rating to A1 from A3.
It has also upgraded the rating of the senior unsecured $3 billion trust certificate issuance program of Senaat Sukuk Limited and of the senior unsecured debt issued under the program to A1. The outlook on all ratings has been changed to stable from negative.
The rating shows Senaat’s continued strategic importance to Abu Dhabi Developmental Holding Company (ADQ), and therefore, the Government of Abu Dhabi with ADQ actively managing the company both on the strategic and operational sides.
On 24 March 2020, the Government of Abu Dhabi transferred the ownership of Senaat to ADQ, which has been consolidating some of Abu Dhabi’s national champions, in line with its mission to implement Abu Dhabi’s economic vision to reduce the local economy’s reliance on the hydrocarbon sector and create job opportunities for Emiratis.
The rating action also reflects the measures taken by ADQ in the last twelve months. This includes monitoring the day-to-day operations of the entities under Senaat and the integration of Senaat’s treasury under ADQ. Moody’s, therefore, expects that ADQ will prudently manage Senaat ‘s debt service and principal repayment obligations as a member of the ADQ group.
ADQ has also orchestrated a number of transactions at the Senaat portfolio level including merger between National Petroleum Construction Company (NPCC) and National Marine Dredging Company (NMDC), Agthia and AlFoah and between Emirates Steel Industries (ESI) and Arkan completed.
Senaat’s standalone assessment is supported by a degree of industry diversification through ownership in several mature companies, as well as a supportive domestic environment in which Senaat’s portfolio companies will benefit from long-term economic growth in Abu Dhabi.
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