Rakia applies for S&P credit rating
Categories: Government
Ras Al Khaimah Investment Authority (Rakia) has mandated Standard and Poor's for a credit rating in an effort to attract more investment into the emirate, a top government official said.
"We are going in for a credit rating and have appointed S&P for the purpose. The rating should not be viewed as our plans to tap the fund market, but is to show the world how safe Ras Al Khaimah is for investment. We expect to get the rating in the next three to four months," said Dr Khater Massad, Chief Executive Officer of Rakia.
Ruling out plans for overseas expansion for Rakia, he said: "It was a directive from emirate's top leadership to invest and develop the emirate. And we are now concentrating on development of RAK."
In late January, S&P assigned RAK its long-term foreign and local currency sovereign credit rating of 'A', while Fitch assigned its 'A' foreign and local currency sovereign credit rating to the emirate. Both the rating agencies maintained a stable outlook.
"Ras Al Khaimah's rating is supported by its relatively diverse economy, rapid economic development and high per capita income and the government's prudent fiscal policy and strong balance sheet," Richard Fox, Head of Middle East and Africa Sovereign Ratings at Fitch, had said.
According to Dr Massad, the investment authority has no plans to launch a sukuk, or Islamic bonds issue this year.
In December 2007, Rakia listed a $325 million (Dh1.19 billion) sukuk on the DIFX and the London Stock Exchange. The money was raised to fund its Al Marjan island project.
Dr Massad, who is also the advisor to Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, refused to comment on whether RAK was planning a sovereign bond issue.
In mid February, Dubai launched a $20bn bond programme as part of its long-term financing strategy. The first tranche, valued at $10bn, has been fully subscribed by the UAE Central Bank.
According to Fitch ratings agency, public sector debt at end-2006 was just seven per cent of gross domestic product (GDP), well below the 'A' median, with no external debt and limited foreign currency debt in Ras Al Khaimah.
However, debt rose to 20 per cent of GDP in 2007, largely due to a $325m sukuk issued by Rakia. Besides, RAK's liberal business model, supported by state-provided infrastructure, has attracted major foreign investment since 2003 in two free zones, which are home to about 4,000 companies.
"We are going in for a credit rating and have appointed S&P for the purpose. The rating should not be viewed as our plans to tap the fund market, but is to show the world how safe Ras Al Khaimah is for investment. We expect to get the rating in the next three to four months," said Dr Khater Massad, Chief Executive Officer of Rakia.
Ruling out plans for overseas expansion for Rakia, he said: "It was a directive from emirate's top leadership to invest and develop the emirate. And we are now concentrating on development of RAK."
In late January, S&P assigned RAK its long-term foreign and local currency sovereign credit rating of 'A', while Fitch assigned its 'A' foreign and local currency sovereign credit rating to the emirate. Both the rating agencies maintained a stable outlook.
"Ras Al Khaimah's rating is supported by its relatively diverse economy, rapid economic development and high per capita income and the government's prudent fiscal policy and strong balance sheet," Richard Fox, Head of Middle East and Africa Sovereign Ratings at Fitch, had said.
According to Dr Massad, the investment authority has no plans to launch a sukuk, or Islamic bonds issue this year.
In December 2007, Rakia listed a $325 million (Dh1.19 billion) sukuk on the DIFX and the London Stock Exchange. The money was raised to fund its Al Marjan island project.
Dr Massad, who is also the advisor to Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, refused to comment on whether RAK was planning a sovereign bond issue.
In mid February, Dubai launched a $20bn bond programme as part of its long-term financing strategy. The first tranche, valued at $10bn, has been fully subscribed by the UAE Central Bank.
According to Fitch ratings agency, public sector debt at end-2006 was just seven per cent of gross domestic product (GDP), well below the 'A' median, with no external debt and limited foreign currency debt in Ras Al Khaimah.
However, debt rose to 20 per cent of GDP in 2007, largely due to a $325m sukuk issued by Rakia. Besides, RAK's liberal business model, supported by state-provided infrastructure, has attracted major foreign investment since 2003 in two free zones, which are home to about 4,000 companies.
Subscription Options
You are not logged in, so your subscription status for this entry is unknown. You can login or register here.
No comments found.
Post a comment (login required)
Fuseworx /