Moody’s affirms Dubai Electricity and Water Authority’s rating with a stable outlook

Moody’s affirms Dubai Electricity and Water Authority’s rating with a stable outlook
Moody’s affirms Dubai Electricity and Water Authority’s rating with a stable outlook

Abu Dhabi – Mubasher: Moody’s affirmed the credit rating of the Dubai Electricity and Water Authority “DEWA” at “2”. Baa ” It gave a stable outlook.

She explained that oil prices and the economic recovery from the “Covid-19” pandemic, will enhance the business environment in Dubai and reduce the risks of decline in the “DEWA” credit file; According to a press release.

Moody’s added that DEWA enjoys a strong market position within the power and water sectors in Dubai, and has a strong asset base with a high reserve margin of 36% in 2020..

She pointed out that the company’s operational performance will rebound in 2021 as a result of the increase in electricity and water consumption.

Moody’s said that DEWA’s liquidity is excellent, and it expects to generate cash flows estimated at a total value of about 11.3 billion dirhams of cash from its operations over the next 12 months..

She pointed out that this expected amount is in addition to 7.2 billion dirhams in cash or its equivalent on June 30, 2021, and 2 billion dirhams in the form of an undrawn credit facility due in 2022 and will be sufficient to cover the capital expenditure needs of DEWA, ​​which are estimated at 13 1 billion dirhams, outstanding debts totaling 3.2 billion dirhams, and dividends estimated at 1.5 billion dirhams.

The future outlook reflects Moody’s view that the credit position of Dubai Electricity and Water Authority is linked to the economic and financial developments of the Emirate of Dubai..

Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority, announced on October 10 that the authority had attracted investments of about 40 billion dirhams through the independent power and water product model, which it uses in a number of its most prominent projects..

This came during his opening speech at the “Dubai International Conference on Public-Private Partnership” organized by the Dubai Department of Finance under the patronage of Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and Dubai Electricity and Water Authority participates in the conference as a strategic sponsor.

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