Dubai Electricity and Water Authority (DEWA) has rejected reports that credit downgrades of government-owned firms could lead to an accelerated payment clause for $2bn of its debt.

A Moody’s report said that DEWA could come under liquidity pressure due to the acceleration clause on its $2bn Receivables Securitisation Programme issued under Thor Asset Purchase Company.

According to reports, DEWA and five other government-owned companies have been downgraded by Moody’s on December 8 from Baa2 to Ba2 for concerns over lack of sovereign backing.