Dubai Electricity and Water Authority (DEWA) today reported that Moody's has upgraded DEWA's long-term issuer rating from Baa2 to A3 with a stable outlook.
In addition to positive macroeconomic trends in Dubai, Moody's has considered DEWA's dominant market position in Dubai's power and water sectors, its strong asset base, strong credit metrics, tariff structure that supports healthy cash flow generation, and the authority's strong liquidity profile.
Saeed Mohammed Al Tayer, MD and CEO of DEWA, said,
"The rating upgrade reflects favourable economic and fiscal developments in the emirate of Dubai, which will translate into improved financial and operating results for the company. DEWA's robust asset base, low overall leverage, and strong operating cash flow provide enhanced certainty of consistent dividend for our valued shareholders."
As per DEWA's dividend policy, the company expects to pay a minimum annual dividend of AED6.2 billion in the first five years starting October 2022. The dividends are paid semi-annually in April and October.
On 26th October 2023, DEWA distributed AED3.1 billion as dividend for H1 2023 to its shareholders, based on a record date of 18th October 2023. For H2 2023, DEWA distributed AED3.1 billion to its shareholders on 26th April 2024, based on a record date of 15th April 2024.
The company expects to make its next dividend payment to shareholders for H1 2024 in October 2024.
News Source: Emirates News Agency
