DEWA

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Dubai Electricity & Water Authority
5 July 2011

DEWA’s Thor Asset Purchase (Cayman) Ltd. Notes Rating Raised to 'BBB'

Based on the Authority's improved stand alone credit profile In a new achievement for Dubai Electricity and Water Authority's (DEWA), Standard & Poor's Rating Services said it raised the issue rating on the US$2 billion senior secured callable floating-rate notes under DEWA’s Thor Asset Purchase (Cayman) Ltd.'s (Thor) US$4 billion medium-term note program to 'BBB' from 'BBB-'. Standard & Poor's Rating Services added that the upgrade of the notes principally reflects Dubai Electricity and Water Authority's (DEWA) good performance and availability of liquidity. H.E Saeed Mohamed Al Tayer, DEWA’s Managing Director and Chief Executive Officer said: “This hike in rating by Standard & Poor's indicates the strong performance of Dubai Electricity and Water Authority (DEWA) and its financial profile and that the trust of the international market is really focused on Dubai”. “The upgrade principally reflects improvements in Dubai Electricity and Water DEWA's stand alone credit profile. Standard & Poor's rated Thor using their criteria for government-related entities .We consider that DEWA's stand alone credit profile has improved primarily as a result of a reduction in refinancing risk through the, repayment of AED 5.4 billion of debt in April 2011 (including a prepayment of the October AED 2.7 billion debt obligation under its syndicated loan) through proceeds from last year’s medium term note issuances”. H E added Standard & Poor's said that it rated Thor using their criteria for government-related entities due to its s integral link with the Dubai given the government's performance guarantee with regard to DEWA's obligations to Thor under the Thor transaction. “DEWA has a relatively comfortable cushion of unencumbered receivables that can be added to the portfolio” Standard & Poor's said in statement issued by the company . It is worth noting that Dubai Electricity and Water Authority (DEWA), successfully accessed the International Debt Capital Markets on the 15th of October 2010 raising a total of US$2,000 mln split across two tranches of US$500 mln maturing in October 2016 at the initial price of 6.375 %, and US$1,500 mln maturing in October 2020 at the initial price of 7.375 %.