RIYADH: Ratings firm Moody’s has affirmed the Baa2 ratings of state-owned Dubai Electricity and Water Authority and revised its outlook to stable from negative, Arab News reported.

“The rating action reflects the credit linkages between DEWA and the government of Dubai. Supportive oil prices and improved prospects for a sustained economic recovery will strengthen the operating environment in Dubai, bolster the emirate’s government finances and limit downside risks to DEWA’s credit profile,” Moody’s said.

The ratings agency expects the company’s operating performance to rebound in 2021, as a result of increased electricity and water consumption as well as the end of the 10 per cent blanket discount on all electricity bills which lasted for three months in 2020 and was not reintroduced in 2021.