Moody’s, the credit ratings agency, yesterday issued its first negative outlook on UAE banks since its began reviewing them a decade ago.
Analysts are concerned that loans to small-scale private developers may pose the single largest threat to the health of the banks, which may suffer in a prolonged property market correction.
“A lot of these developers have been involved in speculative financing, they were selling off-plan... and I see some of them going bust,” said John Tofarides, a Moody’s analyst, in his report.
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