| |||||||
Dubai, Feb 3 (PTI) Following the deterioration in the regional macroeconomic outlook and global crisis, credit rating agency Moody's Investors Service has indicated the possibility of downgrading debt rating of Dubai's six government-owned firms during its review in the coming weeks.
The debt and Islamic bond (Sukuk) rating of these companies -- Dubai Holding Commercial Operations Group, Dubai Ports World, DIFC Investments, Dubai Electricity & Water Authority, Jebel Ali Free Zone and Emaar Properties -- could be lowered by at least two notches.
The current rating for all these companies is A1 except Emaar which is rated A3.
Moody's said the action has been primarily motivated by the deterioration in Dubai's macroeconomic outlook.
The country's open economy has been hit harder by the global economic crisis than others in the Gulf region, largely because of its higher leverage, concentration in cyclical sectors, and more limited fiscal resources, the rating agency said.
"While Dubai's economy is more diversified than regional rating peers, it is dependent on cyclical sectors such as real estate, tourism, trade, and financial services, all of which are being adversely affected by the tougher external environment," Moody's said.
Despite all the government-owned companies are sharing similar challenges due to their exposure to Dubai's and the global economy, individual companies have differing business plans, liquidity and financial flexibility to react to the new environment, it said. PTI
The debt and Islamic bond (Sukuk) rating of these companies -- Dubai Holding Commercial Operations Group, Dubai Ports World, DIFC Investments, Dubai Electricity & Water Authority, Jebel Ali Free Zone and Emaar Properties -- could be lowered by at least two notches.
The current rating for all these companies is A1 except Emaar which is rated A3.
Moody's said the action has been primarily motivated by the deterioration in Dubai's macroeconomic outlook.
The country's open economy has been hit harder by the global economic crisis than others in the Gulf region, largely because of its higher leverage, concentration in cyclical sectors, and more limited fiscal resources, the rating agency said.
"While Dubai's economy is more diversified than regional rating peers, it is dependent on cyclical sectors such as real estate, tourism, trade, and financial services, all of which are being adversely affected by the tougher external environment," Moody's said.
Despite all the government-owned companies are sharing similar challenges due to their exposure to Dubai's and the global economy, individual companies have differing business plans, liquidity and financial flexibility to react to the new environment, it said. PTI
No comments:
Post a Comment