(Bloomberg) -- Dubai's power and water monopoly had its credit rating cut closer to junk status at Moody's Investors Service, citing the potential impact of the coronavirus on the emirate's economy.
Dubai Electricity & Water Authority's rating was lowered to Baa2, two levels above non-investment grade, from Baa1 with negative outlook, according to a statement.
The downgrade “reflects the risk of sustained large dividend transfers from DEWA to the government of Dubai as a result of the deteriorating economic and fiscal health of the emirate,” Moody's said. The utility's “operating performance will likely deteriorate as a result of the likely decline in the expatriate population,” it said.
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- NOTE: On Tuesday; Moody's Says Dubai at Risk From Virus Shock to U.A.E. Economy
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