Fitch ratings boost for $750m Mumtalakat notes
Manama, June 30, 2010
Fitch Ratings has assigned Bahrain Mumtalakat Holding Company's $750 million, five per cent notes, due on June 30, 2015, a final senior unsecured rating of 'A'.
The programme's final rating follows a review of its final terms and conditions which conform to the information already received when Fitch assigned the senior unsecured programme an expected 'A' rating.
The bond's rating is in line with Mumtalakat's long-term Issuer Default Rating (IDR) and senior unsecured rating of 'A', respectively. The outlook on the long-term IDR is stable.
Mumtalakat plans to use the net proceeds from the bond issue to reduce its short-term borrowings and for general corporate purposes.
The bond constitutes direct, unconditional, unsubordinated and unsecured obligations and ranks equally with all its other unsecured obligations.
The terms and conditions of the bond's documentation, which are applicable under English law, include a negative pledge clause and a cross default and cross acceleration provision.
In line with Fitch's 'Parent and Subsidiary Rating Linkage' methodology, Mumtalakat's ratings are aligned with Bahrain's ('A'/Stable/'F1'), reflecting the strong relationship between the two.-TradeArabia News Service