Moody’s assigns Abu Dhabi gas pipelines’ bonds Aa2 rating; outlook stable

Moody’s assigns Abu Dhabi gas pipelines’ bonds Aa2 rating; outlook stable

UAE - Mubasher: Moody's Investors Service (Moody's) has assigned the 'Aa2' rating to the senior secured amortising bonds, which will be issued by Galaxy Pipeline Assets, owned by a consortium of investors holding a stake in ADNOC's gas pipeline assets, with a stable outlook.

The proceeds of the bond issuance will be used in refinancing existing bank debt and paying hedge break costs and associated fees, currently amounting to about $8 billion, according to a press release on Thursday.

The Aa2 rating of Galaxy's bonds shows the strategic importance of the pipeline to Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi government.

The rating also reflects high predictability of revenue under a long-term pipeline use &