Fitch downgrades Dewa and Dubai Holding unit, places Etisalat on watch negative

Fitch ratings has today lowered Dubai Holding Commercial Operations Group (DHCOG), a unit of Dubai Holding, Dubai Electricity and Water Authority (DEWA) and placed the ratings of the country’s largest telecoms firm Etisalat on watch with a negative outlook.

DHCOG and DEWA were downgraded to A- from A+.

Of the three companies, which have ties to Dubai and the UAE government, “the actions reflect Fitch's view that the credit profiles of the sovereign entities have weakened and lower certainty as to how any government support may be provided," Fitch said.