Moody’s revises outlook for Dubai’s utility to stable
- Date: 13-Oct-2021
- Source: Arab News
- Sector:Financial Markets
- Country:UAE
Moody’s revises outlook for Dubai’s utility to stable
RIYADH: Ratings firm Moodyâs on Wednesday affirmed the Baa2 ratings of state-owned Dubai Electricity & Water Authority and revised its outlook to stable from negative. âThe 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 emirateâs government finances and limit downside risks to DEWAâs credit profile,â Moodyâs said. The ratings agency expects the companyâs 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.