Moody’s, the credit ratings agency, has cautioned investors against betting on further bail-outs of Dubai’s state-linked bonds by the emirate’s wealthier neighbour, Abu Dhabi.
State-owned Dubai World rattled global markets in late November by seeking to restructure about $26bn of its debts, but Abu Dhabi at the last minute stepped in with a $10bn loan. This allowed the settlement of a $4.1bn bond repayment due on December 14 at Nakheel, Dubai World’s developer.
Officials have publicly insisted that the bail-out should not be seen as a precedent, but Dubai is understood to be considering the full repayment of other bonds at Dubai World.
No comments:
Post a Comment