Moody's confirms Dubai Electricity

Moody's Investors Service said it confirmed the Ba2 issuer and sukuk ratings of Dubai Electricity & Water Authority and removed them from downgrade review, where they were placed in December. This follows the authority's recent successful negotiation of the terms of its receivables securitization program issued under Thor Asset Purchase Co. Ltd.

These amendments include a partial repayment of the notes by yearend 2010, Moody's said. While this has a negative liquidity impact on the authority, Moody's said it believes the repayment amount can be met with sufficient headroom from its existing cash balance and ongoing cash generation, which was strong in 2009, the agency said.

Moody's also said it believes the authority will remain reliant on third-party funding for the foreseeable future to support its long-term capital expenditure program, which constrains its ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.