Moody鈥檚 revises outlook for Dubai鈥檚 utility to stable

Short Url

RIYADH: Ratings firm Moody鈥檚 on Wednesday affirmed the Baa2 ratings of state-owned Dubai Electricity & Water Authority and revised its outlook to stable from negative.

鈥淭he rating action reflects the credit linkages between DEWA and the government of Dubai. Supportive oil prices and improved prospects for a sustained economic recovery will strengthen the operating environment in Dubai, bolster the emirate鈥檚 government finances and limit downside risks to DEWA鈥檚 credit profile,鈥� Moody鈥檚 said.

The ratings agency expects the company鈥檚 operating performance to rebound in 2021, as a result of

increased electricity and water consumption as well as the end of the 10 percent blanket discount on all electricity bills which lasted for three months in 2020 and was not reintroduced in 2021.