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Abu Dhabi / WAM
Fitch Ratings (Fitch) has affirmed Adnoc Group a standalone credit rating of AA+. According to Fitch, the rating reflects Adnoc’s high upstream production and vast oil reserves, very low cost of production, integration into downstream operations, very conservative financial policies, high financial flexibility and low leverage, and its strong unit profitability.
In line with its Government-Related Entities (GRE) Rating Criteria and Parent and Subsidiary Linkage (PSL) Rating Criteria, Fitch also affirmed a Long-Term Issuer Default Rating (IDR) of AA with a Stable Outlook to Adnoc, in line with the sovereign rating of Abu Dhabi, reflecting Fitch’s view of the strong links between Adnoc and the Abu Dhabi government.
Both the standalone and Long-Term IDR rating remain the highest ratings currently assigned by Fitch for any oil and gas company, globally.
Fitch also commended Adnoc’s successful strategy of bringing in minority partners into its operating companies to attract funding pools and improve access to international markets. Notably, the rating agency highlighted the fact that Adnoc raised $15.9 billion through a series of large-scale energy infrastructure transactions during 2020, led by a groundbreaking $20.7 billion transaction in select gas pipeline infrastructure assets with a consortium of global institutional investors, infrastructure operators and sovereign wealth and pension funds.