Agencies downgrade Dubai companies

Standard & Poor’s and Moody’s on Tuesday downgraded a series of Dubai-based government-related entities as the emirate struggles to cope with a downturn in the local property market and a faltering world economy.

S&P downgraded DP World, Jebel Ali Free Zone, and Dubai Multi Commodities Centre Authority from A to BBB+.

The agency cited “increased uncertainty” as to whether the Dubai government will support the companies and said the new ratings reflected their stand-alone credit profiles which it said had worsened.