Fallout from the Dubai World debt restructuring could cause Dubai Government-related entities to face higher borrowing costs, Moody’s Investors Service says.
But Dubai’s flagship carrier, Emirates Airline, is expected to be exempt due to its sound track record.
After Dubai World announced it would seek a six-month standstill agreement on a US$4 billion (Dh14.69bn) repayment of an Islamic bond due on December 14, analysts said international lenders may view Dubai state-owned companies as more risky than previously thought. They may shift their focus to other emerging markets in the Gulf, the analysts added.
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