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Fitch assigns ADNOC's $1.195bn exchangeable bonds 'AA' final rating

Fitch assigns ADNOC's $1.195bn exchangeable bonds 'AA' final rating
The bonds' rating comes in line with ADNOC's long-term IDR of 'AA'

UAE – Mubasher: Fitch Ratings has assigned Abu Dhabi National Oil Company's (ADNOC) $1.195 billion exchangeable bonds a final senior unsecured rating of 'AA'.

The bonds' rating comes in line with ADNOC's long-term issuer default rating (IDR) of 'AA', which has a Stable Outlook and is constrained by the sovereign due to the strong ties between the company and Abu Dhabi, according to a recent press release.

Fitch assesses ADNOC's standalone credit profile (SCP) at 'aa+', driven by the oil company's high upstream production and vast oil reserves, very low cost of production, integration into downstream operations, and conservative financial policies and low leverage.

It is noteworthy to mention that in late May, ADNOC has proposed to issue around $1.195 billion senior unsecured bonds due 2024, which are exchangeable into existing common shares of ADNOC Distribution accounting for around 7% of the company’s registered share capital.