Apr 03 2010 |
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Moody's assigns (P) Ba2 rating to DEWA's GMTN programme
DIFC, April 01, 2010 -- Moody's Investors Service today assigned a provisional Ba2 rating to the Global Medium Term Notes (GMTN) Programme of Dubai Electricity & Water Authority (DEWA) . The outlook is stable.The rating of the notes is in line with DEWA 's issuer ratings, which are Ba2 with a stable outlook, because any issuance under the programme will constitute unconditional, unsubordinated and unsecured obligations of DEWA . The terms and conditions of the notes include (amongst others) a negative pledge, a cross-default clause and a change of control clause, which comes into effect if the Government of Dubai (directly or indirectly) ceases to own at least 50 per cent of the issued share capital of DEWA .
The principal methodology used in rating DEWA was "The Application ofJoint Default Analysis to Government Related Issuers", published in April 2005, which determines ratings on the basis of a company's baseline credit assessment, as well as credit enhancement for exceptionalgovernment support. Accordingly, ratings were assigned by evaluating factors we believe are relevant to the baseline credit assessment of the issuers, such as i) the business risk and competitive position of the companies versus others within its industry, ii) the capital structure and financial risk of the companies, iii) the projected performance of the companies over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of the companies' core industries and ratings are believed to be comparable to those of other issuers of similar credit risk. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody's website. The last rating action on DEWA was on 25th March 2010, when Moody'sconfirmed the Ba2 issuer and Sukuk ratings of DEWA with a stable outlook.
London
David G. Staples
Managing Director
Corporate Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
DIFC
Martin Kohlhase
Asst Vice President - Analyst
Corporate Finance Group
Moody's Middle East Ltd.
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© Press Release 2010
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