Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Masdar, Abu Dhabi’s flagship renewable energy company, has been assigned a long-term issuer credit rating of AA- with a Stable outlook by S&P Global Ratings, underscoring its financial strength, global reach, and the substantial backing it continues to receive from the emirate of Abu Dhabi.
According to S&P, the rating reflects Masdar’s “extremely high likelihood of receiving timely and sufficient financial support from the government of Abu Dhabi,” given the company’s pivotal role in the emirate’s clean energy transition strategy. The stable outlook mirrors that of the sovereign itself, which holds an AA rating with a Stable outlook.
An AA- rating is among the highest grades awarded by S&P, signalling a very strong capacity to meet financial commitments and a low expectation of credit risk. The “Stable” outlook means the agency expects this strong position to be maintained over the next 12–24 months. For Masdar, the affirmation effectively positions it just one notch below Abu Dhabi itself and places it among the world’s most creditworthy renewable energy developers.
S&P emphasised the ample evidence of state support for Masdar’s growth. “The group has thus far received over Dh20 billion in equity support from the government to finance its acquisitions,” the report noted. This record of injections highlights Abu Dhabi’s readiness to step in with extraordinary support if ever required. “This results in six notches of uplift from Masdar's stand-alone credit profile of ‘bbb-', leading to an 'AA-' long-term issuer credit rating,” the S&P Rating said.
Masdar is also benefiting from its pioneering position in green finance. Despite rising leverage, the company raised around Dh10 billion in 2025 through green bond issuances at a coupon rate of only 5%, demonstrating investor confidence and its strong access to capital markets.
The rating action comes as Masdar accelerates its international expansion. From 2021 to March 2025, the company’s gross capacity — including operational, under-construction and committed projects — more than doubled from 15 gigawatts (GW) to 33 GW. Its portfolio spans more than 25 countries and is concentrated in well-proven renewable technologies, particularly utility-scale solar photovoltaic and onshore wind, which together account for over 80% of its generation base.
Unlike many of its peers, Masdar follows an investor-led approach, outsourcing operations and construction risks to third-party contractors. S&P pointed to the company’s “large, low-risk asset base” supported by long-term take-or-pay contracts, with about 97% of revenues locked in. These factors, combined with government backing, “underpin Masdar’s sound access to capital markets and good relationships with banks,” the report said.
Masdar’s ambition remains to increase its portfolio to more than 100 GW by 2030, a target closely aligned with the UAE’s national clean energy and net-zero goals. As of March 2025, it had an advanced pipeline of 25 GW, of which 15 GW were already under development.
