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Dubai: Two securitisation issues from UAE based companies Tamweel and Tecom have received top ratings from international rating agencies.
Securitisation is a process of converting existing assets (loans) or future cash flows into marketable securities.
Islamic mortgage lender Tamweel's $220 million asset-backed issuance of notes has got a provisional rating of Aa2 from Moody's Investor Service and AA from Fitch ratings.
These ratings are the highest assigned by international rating agencies for an asset portfolio originating from the UAE and the Middle East. "In Moody's opinion the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date," Moody's said in a rating note issued on Tamweel's issue yesterday. As a tiered, multi-class structure, the Tamweel issue will be one of the first securitisations of its type globally.
"Such strong ratings from international rating agencies such as Moody's and Fitch are a clear indication that an originator like Tamweel, can generate a high-quality portfolio," said Adel Al Shirawi, CEO of Tamweel.
Tecom's $67 million issue is the securitisation of a single commercial real estate loan arranged by HSBC Bank Middle East and HSBC Bank Plc. This is the first commercial mortgaged backed securitisation transaction involving properties in Dubai.
Moody's has issued a rating of Aa3 to the issue. The underlying loan is secured by, a mortgage on a single office property located within the Technology and Media Free Zone, Dubai |
