Standard & Poor’s lowered its ratings on a series of big government-linked companies in Dubai on Tuesday, owing to the emirate’s deteriorating economic outlook.
The credit rating agency also put four Dubai-based banks on review for downgrade, predicting that a contracting economy and wilting property market will weigh on the emirate’s financial institutions.
Dubai’s half-decade of rapid growth and extravagant construction projects has been abruptly reversed by the credit crunch, exposing an $80bn pool of largely short-term debt.
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