| Member Options |
|---|
| Property Search | |||||||||
|---|---|---|---|---|---|---|---|---|---|
|
| Real Estate News |
|---|
 |
Qatar’s property market maturing well AFP’s project under highly accelerated construction plan Realty Capital announces completion of 5th podium of i-Rise |
Fitch Ratings assigns TDIC a Long-term IDR of ‘AA’
- March 2, 2009, 11:14 am
Fitch Ratings has today assigned Abu Dhabi-based Tourism Development & Investment Company PJSC (TDIC) a Long-term Issuer Default Rating (IDR) of ‘AA’ with a Stable Outlook and a Short-term rating of ‘F1+’.
Fitch has applied its parent and subsidiary rating linkage methodology to TDIC’s rating, concluding that a strong relationship exists between TDIC and the Emirate of Abu Dhabi (Abu Dhabi, rated ‘AA’/Stable Outlook), and as such TDIC’s rating has been aligned with Fitch’s sovereign rating of Abu Dhabi.
TDIC was established in 2005 through Emiri Decree No. 12. TDIC’s mission, as set forth by the government, is the high profile implementation of the Government of Abu Dhabi’s initiative to develop a diversified economy through tourism and land development. TDIC is in the early stages of development with large on-going investment needs, and currently does not have significant operating assets. Hence, cash flow generation and profit is presently considered minimal.
Board membership includes several established Abu Dhabi businessmen all of whom represent the interests of the government, the most prominent being the Chairman, His Highness Sheikh Sultan Bin Tahnoon Al Nahyan, a member of both the ruling family and the Abu Dhabi Executive Council. Additionally, TDIC’s 100% state ownership status is mandated by law and unlikely to change. It can only be dissolved after 2105 (100 years from its formation) by Emiri decree or if its mandate is deemed complete. Since it was established in 2005, TDIC has received direct government financial support, including the provision of free land recognised by TDIC as equity contributions, totalling about $4.9bn since 2005. The provision of government financial support is expected to continue.
TDIC is focused on developing real estate assets held by the Government of Abu Dhabi, with the primary objective of supporting efforts to increase tourist and business visitor numbers over the coming decade. TDIC’s portfolio of over 60 separate projects are managed and financed in a similar manner to the private sector. Saadiyat Island, a modern integrated residential community with a cultural district that will include the Louvre (Abu Dhabi), Sheikh Zayed National and Guggenheim (Abu Dhabi) Museums, is TDIC’s flagship development.
The primary rating driver for TDIC is its strong ties to the sovereign. On a stand-alone basis, TDIC’s business and financial profile would warrant a rating below that of the sovereign. TDIC’s debt is not guaranteed by the sovereign, but Fitch’s opinion is that TDIC’s high profile and important role mean that support would be provided if required. A change in the rating of the Emirate of Abu Dhabi and a material change in ownership or financial support by the Government of Abu Dhabi, would likely prompt a rating change for TDIC. In addition, any potential floating of key operating assets could also lead to downward pressure on the rating.
Related News
Construction village on Saadiyat Island nears completion
Latest News
Tameer announces ground breaking of Platinum Towers
Baniyas Investments awards contract to Saunders Global
ARRA sets deadline for the developer’s registration
Omniyat Properties current CEO to step down
Damac announces Completion of enabling works at Lincoln Park
| Currency Converter | |||||
|---|---|---|---|---|---|
|