Tuesday 30 June 2009

DP World Among Four Dubai Companies Downgraded by S&P, Moody’s

DP World Ltd., the Middle East’s biggest port operator, and three more companies controlled by Dubai’s government were downgraded as the emirate struggles to convince investors it has sufficient funds to repay their debt.

DP World, Jebel Ali Free Zone, a government-owned industrial park, and the Dubai Multi Commodities Centre Authority, a tax-free business park, had their credit ratings cut by Standard & Poor’s. Dubai Holding LLC, the state- controlled entity that is in talks to merge some of its units with Emaar Properties PJSC, was lowered at Moody’s Investors Service on concern the region’s property slump will continue.

“This reappraisal is the result of increased uncertainty regarding the government’s willingness to provide” cash support to state-owned firms in meeting their debt obligations, S&P said.

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