Dubai – Mubasher: S&P Global Ratings has cut the credit rating of Dubai Electricity & Water Authority (DEWA) and DIFC Investments.
DEWA’s rating was downgraded to BBB, with a negative outlook, while DIFC Investments’ rating was lowered to BBB-, with a stable outlook.
“Credit conditions in Dubai have deteriorated, which we believe affects the government’s likely ability to provide extraordinary financial support to its government-related entities if needed,” S&P said, quoted by Bloomberg News.
While Dubai’s population was increasing the recent years, the emirate’s annual gross domestic product (GDP) per capita has declined to $37,000 in 2018 from $45,000 in 2013 and is expected to reach $36,000 in 2020.
“S&P said DEWA’s negative outlook reflects the possibility that the creditworthiness of Dubai could worsen further in the next two years, which would affect its ability to support the utility,” the New York-based ratings agency revealed.