Moody’s upgraded Dubai Electricity and Water Authority’s (Dewa) long-term issuer rating from Baa2 to A3 with a stable outlook on Thursday.
Moody’s has taken into account favorable macroeconomic trends in Dubai in addition to Dewa’s strong asset base, robust credit metrics, tariff structure that promotes healthy cash flow generation, and the authority’s strong liquidity profile. Dewa holds a dominant market position in Dubai’s water and power sectors.
The rating upgrade reflects favorable economic and fiscal developments in the emirate of Dubai, which will translate into improved financial and operating results for the company,” stated Dewa’s MD and CEO, Saeed Mohammed Al Tayer.
For our cherished shareholders, Dewa’s strong operating cash flow, low total leverage, and diverse asset base increase the certainty of a steady dividend.
In accordance with its dividend policy, Dewa plans to pay a minimum annual dividend of Dhs6.2 billion in the first five years beginning in October 2022.
April and October are the semi-annual payment months for dividends.
Based on a record date of October 18, 2023, Dewa paid its shareholders a dividend of Dhs3.1 billion for the first half of 2023 on October 26, 2023.
Also Read:
Managing the Unexpected at an Event: Key Tips and Strategies
TLB Lenders Startup Urge NCLT To Prevent BYJU’S From Selling Shares
