Moody's assigns A3 rating to Aldar's proposed sukuk

Moody's Investors Service has assigned a (P)A3 rating to Aldar's dirham trust certificates (notes and sukuk) issued by Sukuk Funding (No2) Limited. The outlook is stable, Moody's said in a statement yesterday.

The rating action follows Moody's announcement on April 17 that the Abu Dhabi-based property developer had been assigned long-term foreign and local currency issuer ratings of A3 with a stable outlook.

Moody's said it regards sukuk Al Ijara as senior unsecured obligations. The rating is provisional, subject to receipt of the final offering circular, underlying agreements and legal opinions related to the purchase undertaking, purchase agreement, sale undertaking, costs undertaking, Ijara agreement and the declaration of trust, all of which constitute vital legal documents in the creation of the structure.

Under the proposed structure Sukuk Funding (No2) Ltd, Jersey, issues the sukuk and uses the proceeds to buy from Aldar assets, primarily consisting of a 50-year headlease (musataha) on a plot of land, Moody's said.

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