Dubai – Mubasher: Moody's Investors Service has affirmed the long-term issuer rating of the National Central Cooling (Tabreed) at 'Baa3', with a stable outlook, according to a press release on Monday.

The rating follows Tabreed's 80% acquisition of Emaar Properties' Downtown Dubai cooling district assets for AED 2.48 billion ($675 million).

Tabreed's Baa3 rating is driven by its robust cash flow resilience on the back of long-term fixed charge contracts, low operating risk levels, strong competitive positions in growing GCC markets, and complementary shareholder base.

 The Moody's Analyst and local market analyst for Tabreed, Thomas Le Guay, said: "While the acquisition temporarily increases leverage beyond our downgrade threshold, we have affirmed Tabreed's ratings and maintained the stable outlook because we anticipate that its credit ratios will recover to levels that are commensurate with its Baa3 rating within 12 to 18 months."