Monday 15 March 2010

Dubai’s DHCOG to Avert Restructuring, JPMorgan Says



Dubai Holding Commercial Operations Group LLC, the investment company owned by Dubai’s ruler, will avoid debt restructuring as its balance-sheet and cash-flow profile appear “sufficiently strong,” JPMorgan Chase & Co. said.

“The company’s contractors, despite being owed a substantial amount of money, are likely not in a position to trigger a default,” Zafar Nazim, a London-based analyst at the bank, wrote in the report dated March 12. “We do not expect DHCOG to go through a restructuring.”

JPMorgan maintained its “overweight” rating on all DHCOG’s bonds with a preference for the 6 percent notes due 2017. “We are comfortable with the company’s ability to refinance its $555 million revolver, due July 2010, although terms under refinancing are expected to be unfavorable compared to those in the existing facility.”

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