Tamweel rating upgraded to 'A'

Fitch Ratings has upgraded UAE-based Tamweel’s Long-Term Issuer Default Rating (IDR) to 'A' from 'BBB+', Short-Term IDR to 'F1' from 'F2' and Support Rating to '1' from '2'.

Fitch has simultaneously withdrawn Tamweel's ratings.

At the same time, the senior unsecured programme rating of Tamweel Funding III Limited (TFIII) has been upgraded to 'A' from 'BBB+' and withdrawn, and the senior unsecured Long-Term rating of the guaranteed sukuk issued by TF III has been affirmed at 'A'. A full list of rating actions is at the end of this rating action commentary.

Tamweel's IDRs, Support Rating and the TFIII senior unsecured programme rating have been equalised with those of its majority shareholder, Dubai Islamic Bank (DIB), resolving the Rating Watch Positive (RWP) placed on the ratings on April 2, 2013.

The rating actions follow the increase of DIB's stake in the company, and the greater level of management and operational integration of Tamweel into DIB's franchise.

In May 2013, DIB increased its stake in Tamweel to 86.5 per cent from 58.3 per cent in a share swap deal. Subsequently, at an Extraordinary Meeting held on July 7, 2013, Tamweel's shareholders approved the delisting of its shares from the Dubai Financial Market, subject to relevant regulatory approval.

Fitch has withdrawn the ratings as they are no longer considered analytically meaningful. Following a Dh1.1bn sukuk repayment in July 2013, Tamweel's sole remaining sukuk is one issued by TFIII (maturing in January 2017) and guaranteed by DIB; any future funding requirements will be arranged through DIB.


 

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