Fitch alters ratings of Dewa

Fitch Ratings yesterday said it had placed the Dubai Electricity and Water Authority's (Dewa) senior unsecured and long-term issuer default (IDR) ratings of "BBB-" on Rating Watch Negative (RWN).

The agency also placed Dewa's short-term IDR of "F3" on RWN, as well as a Dh3.2bn sukuk, maturing in 2013, which is rated "BBB-".

The rating action is due to the potential near-term amortisation of a substantial portion of privately-held debt, issued by a related securitisation entity and included in Fitch's analysis of the authority's debt burden, following the downgrade of Dewa's IDR to "BBB-" from "A-" on November 26.

Fitch will closely monitor discussions that the company is holding with funding providers.

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