State-owned utility Dubai Electricity & Water Autority (Dewa) rejected a report that credit downgrades of government-owned firms could lead to an accelerated payment clause for $2 billion of its debt.

'This is incorrect, people are speculating things that are not correct,' the spokesman Abdullah al-Hajri said, adding that Dewa would make an official announcement if the situation evolved.

'Dewa is very strong financially. There has been no request from banks.'    

Moody's said in a report that Dewa could come under liquidity pressure. 'The review of Dewa's ratings considers the potential for liquidity pressure due to the triggering of an acceleration clause on its $2 billion Receivables Securitisation Programme that is issued under Thor Asset Purchase Company Limited.'    

A report in Britain's Financial Times said that the three creditors holding the $2 billion securitisation instrument maturing in 2036, are interested in waiving the accelerated payment clause triggered by the ratings downgrades.

Standard & Poor's, which downgraded its rating on the notes issued under Thor Asset Purchase from BB+ to A- on Dec 3, said its action reflects an understanding that a rating trigger leads to an acceleration on December 14, 2009. -  -Reuters