Fitch Affirms Tourism Development & Investment Company at 'AA'; Stable Outlook

(The following statement was released by the rating agency)

DUBAI/ ISTANBUL /LONDON/ , March 21 (Fitch) Fitch Ratings has affirmed Abu Dhabi-based Tourism Development & Investment Company's (TDIC) Long-Term IDR and senior unsecured rating at 'AA', and Short-Term IDR at 'F1+'. The Outlook on the Long-Term IDR is Stable. TDIC's global medium-term note programme TDIC Finance Limited and outstanding notes and TDIC Sukuk Limited and outstanding notes' ratings have also been affirmed at 'AA'.

KEY RATING DRIVERS

State Support Key to Rating:

Fitch applies its parent and subsidiary rating linkage methodology in rating TDIC, concluding that a strong relationship exists between TDIC and the Emirate of Abu Dhabi ('AA'/Stable/'F1+'), resulting in the ratings being aligned. Strong sovereign ties remain the primary rating driver for TDIC. The agency would not be able to rate TDIC on a standalone basis, due to its very limited operational assets.

Consistent State Funding:

The state has consistently provided TDIC with substantial levels of direct financial support, including the provision of free land, recognised by TDIC as equity contributions. In 2012, the government provided a monetary contribution totalling about AED2.8bn.

Long-Term State Ownership:

TDIC was established in 2005 through Emiri Decree No. 12. It is fully owned by the state via the Abu Dhabi Tourism and Culture Authority, which is mandated to promote economic diversification through supporting and expanding the Abu Dhabi tourism industry. TDIC's 100% state ownership status is mandated by law and is unlikely to change. It can only be dissolved after 2105 (100 years from its formation) by Emiri decree, or if its mandate is deemed complete.

State Development Strategy:

TDIC's mission, as set forth by the government, is to develop and manage Abu Dhabi's tourism investment zones. It is equipped to act as master developer for large-scale tourism projects. TDIC works closely with private-sector developers, the involvement of which is a key part of the government's broader economic strategy.

Unaffected by Public Debt Policy:

In October 2012, Fitch noted that Abu Dhabi's four major state-owned enterprises (SOEs), including the three rated by Fitch - Mubadala Development Company PJSC, International Petroleum Investment Company PJSC (IPIC), and TDIC - are essentially unaffected by the emirate's recently approved public debt policy.

Fitch continues to apply its parent and subsidiary rating linkage methodology in rating these entities, as we understand that the implicit state support from the Emirate of Abu Dhabi has not changed from that previously announced. Fitch does not rate the fourth of the emirate's largest SOEs - Abu Dhabi National Energy Company PJSC (TAQA). For more details, see 'Fitch: Major SOE Ratings Still Benefit from Abu Dhabi Support', dated 24 October 2012 at

. RATING SENSITIVITIES Sovereign Rating Change:

A change in the sovereign ratings of Abu Dhabi would lead to a similar change in TDIC's ratings, as the ratings are aligned under Fitch's parent and subsidiary rating linkage methodology.

Implied Support, Operational Structure:

Any change in the implied support and commitment from/ownership by the government of Abu Dhabi would prompt a review of the ratings. A significant change in TDIC's operational structure, and any potential divestment of key operating assets, would also prompt a review of the ratings.

Contact: Principal Analyst Cigdem Cerit Analyst [phone] Supervisory Analyst Bashar Al Natoor Director [phone] Al Thuraya Tower 1 Office 1805 Dubai Media City Committee Chair Frederic Gits Managing Director [phone]

Media Relations: Peter Fitzpatrick, London, Tel: [phone], Email: [e-mail].

Additional information is available at

. For regulatory purposes in various jurisdictions, the supervisory analyst named above is deemed to be the primary analyst for this issuer; the principal analyst is deemed to be the secondary.

The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable criteria, 'Corporate Rating Methodology', dated 12 August 2012, and 'Rating Sukuk', dated 16 August 2012 is available at

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Applicable Criteria and Related Research

Corporate Rating Methodology

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