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S&P affirms Mubadala 'AA/A-1+' rating affirmed; Outlook Stable

S&P affirms Mubadala 'AA/A-1+' rating affirmed; Outlook Stable
Photo Credit: Arabianeye - Reuters

Abu Dhabi-Mubasher: Standard & Poor's affirmed its 'AA' long-term and 'A-1+' short-term issuer credit ratings on Mubadala Development Co., with Stable Outlook.

"We equalize our ratings on Mubadala with those on the Emirate of Abu Dhabi )AA/Stable/A-1+). This reflects our view that there is an almost certain likelihood that the Abu Dhabi government would provide timely and sufficient extraordinary support to Mubadala in the event of financial distress," the agency said on its website.

In accordance with S&P's criteria for rating government-related entities (GREs), including Mubadala, the agency's view that there is an almost certain likelihood of extraordinary government support is based on assessment of the company's:

Critical role for the Abu Dhabi government, as its main vehicle for business development and diversification of the economy; and integral link with the Abu Dhabi government, its 100% owner.

The company plays a critical role in the Abu Dhabi government's policy of diversifying the economy of the United Arab Emirates (UAE) through its mandate to invest in key social infrastructure and create globally integrated industry sectors in Abu Dhabi.

The company enters into strategic partnerships and investments across multiple sectors and aims to strengthen the growth potential of Abu Dhabi's economy and help the government meet socioeconomic targets, as set out in its long-term plan, "The Abu Dhabi Economic Vision 2030."

The operations of Mubadala and its subsidiaries encompass a wide range of activities, including semiconductors, metals, aerospace, communication technology, defense services, oil and gas, renewable energy, real estate and infrastructure, and health care. In addition, the company pursues financial investments to broaden its revenue and cash sources.