Moody’s cuts Dolphin Energy rating on dispute between Qatar and Gulf states

Dolphin Energy, a joint venture company that owns the pipeline carrying Qatari natural gas to the UAE and Oman, is 51 percent owned by Abu Dhabi’s strategic investment firm Mubadala. (Courtesy Dolphin Energy)

DUBAI: Moody’s Investors Service on Wednesday downgraded Dolphin Energy’s rating a notch lower to A2, from A1, citing the ongoing dispute between Qatar and its Arabian Gulf neighbors.
Dolphin Energy, a joint venture company that owns the pipeline carrying Qatari natural gas to the UAE and Oman, is 51 percent owned by Abu Dhabi’s strategic investment firm Mubadala.
“Moody’s believes that in the current geopolitical environment, if the dispute further escalates, the risk of a gas supply disruption initiated by Qatar is higher than previously assessed. The impact on Dolphin Energy’s debt service capacity following a supply disruption could be very severe,” the investor said in a statement.
And any disruption to gas supply due to the Gulf tension could result into a multi-notch downgrade, it added.
“Moody’s could also downgrade the rating following a further reduction in the support assumptions incorporated in our assessment; a multi-notch downgrade of Mubadala’s rating; a lasting deterioration in the relationship between the UAE and Qatar or a deterioration in the project’s operating and financial performance,” ratings agency said.
Moody’s earlier downgraded the outlook on three Qatari companies, after cutting its outlook on the country’s sovereign rating earlier this week.
It downgraded the outlook to negative from stable on the Aa3 long-term issuer rating of Qatar’s national oil and gas company Qatar Petroleum; the A1 long-term issuer rating of QP subsidiary Industries Qatar; and the A1 long-term issuer rating of Qatar Electricity and Water Company.