Moody's revises Jafz sukuk ratings

Moody's Investors Service yesterday revised the foreign and local currency issuer ratings of Jebel Ali Free Zone (Jafz) and the rating for Jafz sukuk's Dh7.5 billion trust certificates due in 2012 to A2 from A1 and placed the ratings under review for further possible change.

"The revision was prompted by the close commercial relationship between Jafz and Dubai World, its parent company, which has impacted Jafz's baseline credit assessment given the growing financial challenges at Dubai World," Moody's said in a statement.

Jafz holds its surplus funds at Dubai World level under shared treasury services and can call these funds on demand. The total inter-company receivables per 2008 year-end amounted to Dh2.1bn, of which about Dh1.7bn relate to Dubai World, the agency said.