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Fitch withdraws DEWA’s ratings and Thor Asset Purchase notes’ rating.

Fitch says the DEWA withdrawal is due to a lack of information to assess the Emirate of Dubai.

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March 23, 2011 3:14 by



Fitch Ratings has withdrawn Dubai Electricity and Water Authority’s (DEWA) ‘BBB-’ Long-term Issuer Default Rating (IDR); Outlook Negative, ‘F3′ Short-term IDR, ‘BBB-’ senior unsecured rating, notes issued under the USD3bn GMTN Programme rated ‘BBB-’, and DEWA Funding Limited’s AED3.2bn ‘BBB-’ rated Sukuk.

The withdrawal is due to a lack of information to assess the Emirate of Dubai. Fitch’s assessment of DEWA’s creditworthiness has historically been a reflection of the agency’s view on the creditworthiness of the sovereign, as a result of strong operational, legal and strategic linkages.
While information flow from DEWA is regular and comprehensive, Fitch has considered it necessary to form a judgement on the view of the Emirate of Dubai to complete the information profile for the issuer, for which levels of information are expected to be insufficient going forward.
DEWA is a fully integrated electricity and potable water utility in the Emirate of Dubai and is fully owned by the Emirate of Dubai.
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Fitch Ratings has withdrawn Thor Asset Purchase’s USD2bn floating-rate notes due 2036 (issued under its USD4bn programme) current rating of ‘BBB-’ with Negative Outlook.
The withdrawal is based on the lack of information to assess the Emirate of Dubai. The notes’ rating is closely linked to the Emirate of Dubai’s and reflects the strong link between Dubai Electricity and Water Authority (DEWA) and the Emirate of Dubai. DEWA is a fully integrated electricity and potable water utility in the Emirate of Dubai and is wholly owned by the government of Dubai.
The transaction is a cash flow securitisation of existing and future electricity and water receivables originated by DEWA in the Emirate of Dubai. The originator has sold all receivables relating to accounts flagged for the securitisation programme to the issuer, a special purpose vehicle incorporated in the Cayman Islands.



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