Cairo – Mubasher: Moody's Investors Service said on Tuesday it affirmed and will withdraw Baa2 long-term issuer and (P)Baa2 program ratings of Abu Dhabi based Mubadala GE Capital Ltd (MGEC), a joint venture between Mubadala Development Company PJSC (Mubadala; Aa2, Stable/Prime-1) and General Electric Capital Corporation (GECC; A1, no outlook). Prior to the withdrawals, Moody's also changed the negative outlook on the ratings to no outlook.
Moody's rating action to affirm and then withdraw Baa2 issuer and (P)Baa2 program ratings follows 1) the decision earlier this year of General Electric Company (GE; A1, stable) to downsize GECC, which originates and services most of MGEC's asset base, and 2) the recent successful sale agreement of substantially all MGEC assets to MidCap Finco Ltd (MidCap). On 17 December, MGEC fully repaid $500m outstanding notes under its Global Medium Term Note program, which will be terminated, with no other public debt outstanding. Moreover, the transfer of assets is ongoing and the full wind-down process of MGEC will be completed shortly.
The change in outlook, to no outlook, reflects the imminent wind-down of the company, while the previous negative outlook had reflected potential execution risks associated with the sale of MGEC's assets to MidCap, which is now concluded.
