Abu Dhabi move 'to boost TDIC ratings'
London, January 31, 2012
Abu Dhabi's recent affirmation of its major projects is credit-positive for the Tourism Development & Investment Company (TDIC), despite the spending review, according to ratings agency Moodys.
Headquartered in Abu Dhabi, TDIC is a 100 per cent government-owned entity established in 2005.
Abu Dhabi's executive council had last week affirmed a number of projects under the umbrella of the emirate's Strategic Plan 2030. Among the projects are those of the Tourism Development & Investment Company (TDIC), rated A1/stable, said Moodys ina statement.
The affirmation of these projects and their budgets by Abu Dhabi, largely consisting of cultural assets and the construction of landmark museums, is bolstering TDIC's credit profile as the company remains dependent on support from the government to construct key government assets, it added.
Initially, TDIC last August had cancelled a tender for a contract for the Guggenheim Museum, one of its key projects, and in October confirmed project delays, said Moodys.
The majority of TDIC's funding comes from the government to carry out its pipeline of government assets, while commercial projects remain funded through commercial providers and cash flows generated by existing operating assets, although cash flows will be ramped up over time.
The delay of execution and delivery of the assets creates less strain on TDIC from an organisational and financial perspective and hence is viewed as positive.
Notably absent from the list of projects clarified were two additional cultural assets - a performing arts centre and the maritime museum - which TDIC was supposed to embark on during phase 2 of the development of the Saadiyat Cultural District, said the ratings agency, the ratings agency stated.
The impact from a delay of these projects, however, would be muted as no or little development costs would have been incurred at this stage, it added.
Three other museums - the Louvre Abu Dhabi, the Zayed National Museum and the Guggenheim Abu Dhabi - are slated to open on a staggered schedule in 2015, 2016 and 2017 respectively.-TradeArabia News Service