UAE’s Masdar achieves its first credit ratings from Moody’s & Fitch

By Arya M Nair, Official Reporter
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Masdar, one of the world’s fastest-growing renewable energy companies, has received its first credit ratings from Moody’s Investor Services and Fitch Ratings, placing it firmly in the investment-grade category.

Moody’s and Fitch, two of the leading agencies that evaluate the creditworthiness of commercial and sovereign entities, issued long-term ratings of A2 and A+ respectively, both with a stable outlook, following extensive due diligence in accordance with their global ratings standards.

The company’s status as a subsidiary of Mubadala Investment Company and Mamoura Diversified Global Holding, as well as its status as a Government Related Entity (GRE) of the Government of Abu Dhabi, which is rated Aa2 by Moody’s and AA by Fitch, were major factors in determining the ratings.

The credit ratings will provide the company a strong foundation platform to access capital markets, giving it more flexibility in financing and investing in new projects at competitive rates as it expands globally. Masdar has already committed to renewable energy projects across more than 30 countries, totaling $20 billion in investment and a generation capacity of about 13 GW.

Masdar’s extensive track record and sector expertise, as well as its relatively low exposure and reliance on external debt, backed by Mubadala and the Abu Dhabi government, were noted by the agencies in their rankings.

Mohamed Jameel Al Ramahi
Mohamed Jameel Al Ramahi
CEO – Masdar

“The award of these investment-grade credit ratings marks a key milestone in Masdar’s development journey. The ratings are a strong endorsement of Masdar’s financial stability and the creditworthiness of our core business model and reflect confidence in Masdar’s cash generation ability, unrestricted liquidity, and future growth prospects as an Abu Dhabi-based company. As we progress on our global expansion journey, we recognize the importance of transparency and good governance, and our first-time ratings are testament to those values.”

The rating agencies have made the link between Masdar City, the company’s flagship sustainable urban development project, and the growing global appetite for sustainable real estate developments, with the added benefit of Masdar being a free zone strategically located between Europe and Asia, when assessing the company’s main revenue drivers. 

They also evaluated Masdar’s second main source of revenue, its investments in global clean-energy projects, which are growing in demand as the world becomes more conscious of the need for action on climate change, creating solid long-term development potential for the company.

Mr. Musabbeh Al Kaabi, CEO of the UAE Investments at Mubadala, said, “The ratings demonstrate the strength of Masdar’s position as a global player in the sustainable development sector and validate the futuristic ambitions that started 15 years ago when Mubadala first incubated Masdar as the UAE’s renewable energy and sustainable urban development arm.”

Masdar, also known as Abu Dhabi Future Energy Company, is one of the world’s fastest-growing companies in the sphere of sustainability. Masdar City is an innovation hub and free zone that hosts more than 900 commercial tenants and thousands of employees and residents living and working in one of the world’s most sustainable communities.

Related: Moody’s upgrades baseline credit assessment of Saudi Telecom Company