Dubai-based port operator DP World USD3.25 billion inaugural Debt Issues rated 'A+'

At the same time, an 'A+' senior unsecured debt rating was assigned to DP World Sukuk Ltd.'s $1.5 billion 6.25% "sukuk" trust certificates due 2017. DP World will use the proceeds from the two debt issues primarily to refinance existing credit facilities.

DP World is a major international port operator. The ratings on DP World reflect the implicit sovereign support of the Emirate of Dubai as the company's 100% indirect owner; its strategic importance for the emirate; and previous state support for the company's activities. There are, however, no formal guarantees.

DP World Sukuk is a limited liability company established by DP World to facilitate the issuance of sukuk trust certificates. DP World Sukuk has entered into a purchase and sale undertaking and "mudaraba" (investment) agreement with DP World, primarily in relation to its development of the container terminal 2 facility at its principal Jebel Ali port in Dubai. Trust certificate holders benefit from a declaration of trust over DP World Sukuk's interest in the mudaraba assets. They also benefit from various rights, title, and benefits under the sukuk transaction documents. Under the mudaraba agreement, DP World Sukuk will receive 99% of profits generated from the mudaraba assets and will use this revenue to pay periodic distribution amounts to certificate holders. If the mudaraba-generated profits are insufficient, DP World is obliged to provide timely Sharia-compliant funding to meet any potential shortfall in distribution. Certificate holders also benefit from a negative pledge over DP World's assets as well as an irrevocable purchase undertaking in the event of a change of control in the percentage ownership (to less than 50%) of DP World by the Emirate of Dubai.

The rating on the trust certificates reflects: that, in the event that payments from the mudaraba assets are insufficient to meet distributions, the shortfall payments by DP World will rank pari passu with payments to DP World's other unsecured creditors; that there is a cross default with DP World's other debt obligations; and the integral place of the certificates within DP World's capital structure.