Moody’s affirms Mubadala's Mamoura credit rating and maintains stable outlook

Moody’s Investors Service affirmed the credit rating of Mamoura Diversified Global Holding (MDGH), a wholly-owned subsidiary of Mubadala Investment Company, citing its strong links with the Abu Dhabi government.

The agency maintained Mamoura's "Aa2" long-term issuer rating, Moody's third-highest investment grade rating and on the same level as that assigned to the Abu Dhabi government.

"Aa" ratings are considered high-quality and are subject to very low-credit risk.

Moody's also maintained its stable outlook as the company continues to play a key role in diversifying Abu Dhabi’s economy away from oil and gas.

“The stable outlook on MDGH's rating is aligned with the stable outlook on the rating of the government of Abu Dhabi, given the strong credit links between the two,” Moody's said on Wednesday.

“It also reflects Moody's view that the government's capacity and willingness to provide timely support will remain very high on a sustainable basis.”

Set up in 2002, MDGH is a strategic investment, development and asset management vehicle. Following the transfer of a significant portion of International Petroleum Investment Company’s assets in 2018, MDGH's portfolio currently spans five continents, with interests in aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, health care and others.

The company reported a group revenue of Dh47.5 billion ($12.9bn) for the 12-month period ending June 2021, while its group profit touched Dh38.7bn, according to Moody’s.

The rating agency expects the company to “maintain a balanced approach between growth and mature investments, and continue to recycle capital from the monetisation of mature investments into growth industries”.

Mubadala's strategy of linking up “with leading industry businesses to broaden into new sectors and geographies” will benefit the company, it said.

MDGH's rating also benefits from "the explicit, public and repeated statements of support" from Abu Dhabi's Department of Finance, Moody's said.

The company also changed its investment strategy in 2021, a factor that could have a positive effect on its operations, the rating agency said.

MDGH also recently reorganised its operations into UAE investments, disruptive investments and property and infrastructure investments.

"This will allow the company to better employ its internal resources, improve synergies across the board and generate better returns on its investments," Moody's said.