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Fitch Downgrades ratings of two Dubai firms

In a statement, the ratings agency said the ratings continue to benefit from potential support from the government and Dubai’s strong position and role within the UAE federation.

“DHCOG’s ratings are largely explained by its ownership structure and strategic position in the development of Dubai. Its strong sovereign linkage supports a Long-term Issuer Default rating (IDR) consistent with Fitch’s assessment of Dubai’s creditworthiness. DEWA’s ratings continue to be supported by its position as the exclusive vertically integrated electricity and potable water utility in Dubai, consistently improving efficiency levels, and a modern asset base.”

The DHCOG rating actions are summarised as follows: Long-term IDR downgraded to ‘A+’ from ‘AA-’ (AA minus); senior unsecured rating downgraded to ‘A+’ from ‘AA-’ (AA minus); short-term IDR downgraded to ‘F1’ from ‘F1+;’ the outlook for the long-term IDR is stable.

The DEWA rating actions are summarised as follows: Long-term IDR downgraded to ‘A+’ from ‘AA-’ (AA minus); senior unsecured rating downgraded to ‘A+’ from ‘AA-’ (AA minus); short-term IDR downgraded to ‘F1’ from ‘F1+’; Dh3.2 billion 2013 Sukuk issued by DEWA Funding Limited downgraded to ‘A+’ from ‘AA-’ (AA minus).

issacjohn@khaleejtimes.com