In the latest fallout from Dubai’s debt troubles, Moody’s Investors Service is warning that it may cut credit ratings on several companies controlled by the Abu Dhabi Government if officials fail to convince the agency that they would never be allowed to go the way of Dubai World.
The credit ratings agency issued a report last week outlining the criteria it is using to determine whether to continue giving such UAE companies as Mubadala Development and the International Petroleum Investment Company (IPIC) higher ratings on the strength of their government ties.
Saying they were in discussions with government officials, Moody’s analysts warned that if they came away with even slightly less confidence in the likelihood of a potential government bailout, “some ratings could drop by several notches”.
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