DIFC Investments, the investment arm of the Dubai International Financial Centre, reported a substantial loss last year as a leading ratings agency questioned the willingness of the emirate to fully underwrite the debts of its companies.
Growing uncertainty over whether Dubai will help companies meet their debt obligations led Standard and Poor’s (S&P) to put DIFC Investments, which reported a US$543 million (Dh1.99 billion) loss, and five other government-related companies on review for a possible ratings downgrade.
The announcement marked the latest in a series of similar notices from ratings agencies warning of a deteriorating credit environment for large corporations and banks in the UAE because of the global financial crisis.
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