Dewa taken off Fitch ratings watch

Fitch Ratings has affirmed the Dubai Electricity and Water Authority's (Dewa) senior unsecured and Long-term Issuer Default (IDR) ratings at 'BBB-' and Short-term IDR at 'F3'.

The agency has also affirmed Dewa's $3 billion (Dh11.01bn) medium-term notes programme and notes issued under that programme, as well as Dewa Funding Limited's Dh3.2bn Sukuk, maturing in 2013, at 'BBB-'. All ratings have been taken off Rating Watch Negative and a Negative Outlook has been assigned to the Long-term IDR.

The rating action reflects successful efforts by management to access funding despite market volatility and to address liquidity concerns that emerged in December 2009 after a specified event was triggered under its $4bn securitisation programme, giving investors the option to call the transaction in full ($2bn issued until that date).

Dewa had issued $1bn notes maturing in 2015, further supporting its liquidity profile which is now adequate to meet near-term maturities, said the statement.