Fitch assigns Dolphin Energy Limited senior secured bonds final 'A+' rating

The 'A+' rating is supported in particular by the project's strong strategic rationale, as an important and cost competitive gas supplier to Abu Dhabi and Dubai which have emerging gas deficits.

The project also benefits from an experienced sponsor group, satisfactory operating performance, relatively good protection against market risk, a solid hydrocarbon reserves position, and the covenanted ownership of 51% by the Government of Abu Dhabi.

The rating is constrained by the single site nature of the project's main processing facilities at Ras Laffan which represent a major concentration of operating risk for bondholders. In addition, the project's split legal structure and consequent multi-borrower, and inter-waterfall loan mechanisms are notably complex.

However, there are compelling reasons to regard the project as a whole.

Fitch will continue to monitor in particular the project's operating performance, the construction of the Taweelah Fujairah pipeline, the expansion of storage facilities at Ras Laffan, and progress on resolving certain residual technical issues.

DEL operates a large oil and gas project involving the extraction of gas from offshore fields in the Persian Gulf, the processing and separation of the gas at facilities in Qatar, the transportation of the clean gas via pipeline to customers in the United Arab Emirates and Oman, and the sale of condensate, LPG and other by-products, generally to international customers.

DEL has recently raised around $2.9bn of senior secured debt through a combination of bank loans, loans insured by an export credit agency, and a bond issue. Additional equal ranking senior secured debt of around $1.2bn has been raised through loans from project sponsors.

These various sources of debt will be used to refinance maturing debt and to fund capital expenditure and financing fees. All of the senior secured debt is scheduled to amortise fully on a sculpted basis and mature on 15 June 2019.