S&P Global Ratings is assigning its preliminary 'AA' long-term rating (the second highest rating possible) to UAE-based Abu Dhabi Crude Oil Pipeline LLC’s (ADCOP) proposed US$3069 million senior secured bonds. The outlook is stable.
UAE-based Abu Dhabi Crude Oil Pipeline LLC (ADCOP) is a limited-purpose entity created to own a 382 km crude oil pipeline from Habshan to Fujairah.
S&P is assigning its preliminary 'AA' long-term rating to ADCOP's proposed US$3069 million senior secured bonds.
The proceeds from the issuance will be used to repay a portion of the shareholder loan incurred to acquire the asset.
The rating is based on the creditworthiness of Abu Dhabi Company for Onshore Petroleum Operations Ltd (ADNOC Onshore), the sole operation and maintenance provider for the pipeline and the sole off-taker. ADNOC Onshore is 60% owned by Abu Dhabi National Oil Company (ADNOC), which is 100% owned by the Abu Dhabi government (AA/Stable/A-1+).
The stable outlook reflects S&P’s expectation that ADNOC Onshore will maintain and operate the pipeline to ensure smooth operations and make timely payments to ADCOP. Furthermore, it reflects the expectation that ADNOC Onshore will remain integral to the ADNOC group's strategy. The stable outlook also reflects that on the Abu Dhabi government, the ultimate owner of the pipeline.
Read the article online at: https://www.worldpipelines.com/business-news/20102017/sp-assigns-aa-rating-to-adcop/