Moody's rates TAQA North guaranteed Bonds (P)Aa2

The bonds are unconditionally and irrevocably guaranteed by the parent, TAQA, and therefore are rated at the same level as the guarantor. Ratings are provisional subject to finalisation of the offering prospectus.

The bonds will be issued in Canadian Dollars (CAD) in three series to fund recent acquisitions in Canada, notably Northrock Resources Limited and the still pending acquisition of the Canadian subsidiaries of Pioneer International Resource Company, both of which upstream oil & gas companies.

Bonds will be senior unsecured and unsubordinated obligations and will rank pari passu with all other present and future unsecured and unsubordinated indebtedness of TAQA North and TAQA. Moody's does not rate
TAQA North on a non-guaranteed basis or any non-guaranteed debt of TAQA North.

TAQA, the guarantor, is rated as a government-related issuer, which receives significant credit enhancement to its baseline credit assessment of 11 due to the high government support that is factored into its rating.

Accordingly, TAQA's ratings are at the same level as the Abu Dhabi sovereign rating, which is also Aa2.

TAQA was established in 2005 as the government-controlled entity tasked with holding the majority of the Abu Dhabi state's power generation and water desalination plants, and to establish Abu Dhabi's footprint in the energy sector internationally. The company is 75.1% indirectly owned by the government of Abu Dhabi.

TAQA North is an oil and gas exploration company based in Calgary, Alberta. It is a wholly owned subsidiary of TAQA.