Fitch Ratings cut $2 billion of floating rate notes issued by Thor Asset Purchase to
‘BBB-’ from ‘A-’ and placed the ratings on Rating Watch Negative.

The notes mature in 2036 and have amortized down to about $425 million, according to the Web site of Moody’s Investors Service, which earlier in November confirmed the paper at ‘A1.’

The downgrade follows the announcement by Dubai World that it would seek a moratorium on debt payments for six months. While the company is state-owned, a Dubai official apparently told news agencies that its debts are not guaranteed by the government.

The Thor deal is backed by an existing and future electricity and water receivables originated by Dubai Electricity and Water Authority (DEWA).

“The rating…is closely linked to the government of Dubai and reflects a strong link between DEWA and the government of Dubai,” Fitch said in a report. Aside from being owned by the government, the originator is Dubai’s only supplier of power and water.

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