Shuaa Capital downgraded from Ba1 to B1

Moody's Investors Service, a global rating agency, yesterday downgraded Dubai-based investment bank Shuaa Capital by three notches and placed it on review for possible further rating cut due to increasing uncertainly on deal with Dubai Banking Group.

The long-term foreign and local currency issuer ratings were downgraded from Ba1 to B1.

The rating downgrade represents a one-notch reduction in the standalone rating of Shuaa and the elimination of the two-notch uplift previously given because of potential parental support considerations. However, Shuaa's prime short-term ratings are not affected.