UAE - Mubasher: Moody's Investors Service (Moody's) has affirmed the ratings of Dubai Electricity and Water Authority (DEWA) at 'Baa2' and revised outlook to stable from negative.

The ratings are attributed to the credit links between DEWA and the Dubai government, supportive oil prices, and improved prospects for a sustained economic recovery, according to a press release on Thursday.

These factors will foster the operating environment in Dubai, strengthen the emirate's government finances, and limit downside risks to DEWA's credit profile.

Meanwhile, the authority's operating performance will recover in 2021, driven by increased electricity and water consumption and the end of the 10% blanket discount on all electricity bills.

The stable outlook also reflects that DEWA's credit profile is related to the economic environment and fiscal strength of Dubai.