S&P trims DEWA, DIFCI views to negative

S&P said it revised its outlooks on Dubai Electricity and Water Authority (DEWA) and DIFC Investments LLC to negative from stable.

S&P has affirmed its BBB+ long-term corporate credit ratings on DEWA and the BBB long-term corporate credit ratings on DIFCI.

“The outlook revisions reflect the possibility of fiscal pressure in the Emirate of Dubai, which in turn may weaken the government's ability to support its key government-related entities (GREs) if needed. This could be the result of potential additional government spending to support GREs and/or banks, should the real estate downturn accelerate compared with our expectations,” S&P said in a news release.

“Further increases in government spending in relation to Expo2020, perhaps due to overruns, could also result in an acceleration in the accumulation of government debt.”

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