Dubai Holding suffers S&P ratings blow

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Standard & Poors on Monday downgraded and removed its rating of Dubai Holding Commercial Operations Group, an investment vehicle owned by the ruler of Dubai, citing insufficient information.

Dubai Holding’s non financial arm, which spans real estate, business parks and hospitality interests, was lowered from BB+ to B on the grounds that group is likely to have weaker cash flow than previously expected, S&P said in a release.

DHCOG, which includes hotel chain Jumeirah and Dubai Properties, has been hit hard by Dubai’s recession and real estate crash. Many analysts expect it to face debt repayment problems this year after another Dubai state-linked conglomerate, Dubai World, said in November that it would call a standstill on $26bn in debts.