Global Arab Network | UAE: Fitch Assigns Abu Dhabi-based Waha Aerospace's Guaranteed Bond AA Rating

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UAE: Fitch Assigns Abu Dhabi-based Waha Aerospace's Guaranteed Bond AA Rating

Global Arab Network - - George Haddad

Friday, 16 July 2010 16:27

UAE (Abu Dhabi ) Fitch Ratings has assigned Waha Aerospace B.V.'s upcoming issue of USD1.5bn guaranteed bond an expected rating of 'AA' with Stable Outlook.

The final rating is contingent on the receipt of final documents conforming to information already received.

The notes' rating relies on an unconditional and irrevocable guarantee provided by Abu Dhabi ('AA'/Stable/'F1+') to the issuer and is therefore linked to the creditworthiness of the guarantor. The guarantor's obligation under the guarantee is as if it was the sole principal debtor and that obligation continues as long as any amount remains outstanding.

The issuer has entered into a usage payment agreement with The GHQ UAE Armed Forces (GHQ), to finance the acquisition of Boeing C-17 transportation aircraft. Under the terms of the usage payment agreement, the issuer will make regular payments to the GHQ to finance the instalments due in relation to the acquisition of the aircraft. The issuer's obligation is funded by the bond issuance. The GHQ, in return, will make regular repayments according to the agreed repayment schedule.

The rating addresses the timely payment of interest and timely payment of principal on the bonds in accordance to the terms and conditions of the documentation.

Further information on Fitch's EMEA structured finance offering can be found in "EMEA Structured Finance Snapshot", which is available at www.fitchratings.com. The Snapshot consolidates and highlights the key research and commentary produced by the agency's EMEA structured finance group and includes previously unpublished Fitch data and multimedia content that will be updated each quarter.

Global Arab Network

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