Friday 26 March 2010

Moody's takes Dubai's DEWA off downgrade review



Moody's confirmed the ratings of Dubai Electricity & Water Authority (DEWA) on Thursday and took it off review for downgrade after the state-owned utility sealed a deal on the terms of its receivables securitisation programme.

Last year, Moody's lowered DEWA's issuer and Islamic bond ratings to 'Ba2' and placed it on review for downgrade after Dubai's debt crisis erupted in November, citing concerns about the utility's liquidity as it faced a risk of an accelerated payment of $2 billion.

"Note holders agreed to temporarily waive this trigger, and have since agreed to a range of longer term amendments to the documents, which have eased the liquidity pressure on DEWA," the agency said in a statement.

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