The downgrade is due to the worsened economic outlook for Dubai and the likely pressure this will put on Dubai's public finances.
The transaction is a cash flow securitisation of existing and future electricity and water receivables that were originated by Dubai Electricity and Water Authority (DEWA, rated 'A+'/Outlook Stable) 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 Cayman Islands.
The rating of the note is closely linked to the government of Dubai and reflects the strong link between DEWA and the government of Dubai. DEWA is the sole provider of electricity and water in Dubai and is wholly owned by the government of Dubai. DEWA's rating was downgraded to 'A+' with Stable Outlook from 'AA-' (AA minus)/Stable Outlook.on 17 December.
The rating addresses the timely payment of interest on the note as well as the repayment of principal at legal maturity in accordance to the terms and conditions of the documentation.
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Fitch downgrades Thor Asset Purchase note rating
- United Arab Emirates: Monday, December 22 - 2008 at 15:54
- PRESS RELEASE
Fitch Ratings has today downgraded Thor Asset Purchase's $2bn floating-rate note due 2036 (issued under its $4bn programme) to 'A+' with Stable Outlook from 'AA-' (AA minus)/Stable Outlook.
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for more details please contact:Sanjay Krishnan, London, Tel: +44 20 7070 5806; Joanne Wong, +44 20 7417 4312.
Peter Fitzpatrick, London
Tel: + 44 (0)20 7417 4364
Posted by Nadeen El AjouMonday, December 22 - 2008 at 15:54 UAE local time (GMT+4)
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