New concerns emerge about Dubai's transparency

* username: rupertbu

In the weeks since Dubai World shocked world markets with an announcement it needed to delay repaying $26 billion in debts, Dubai has sought to reassure leery investors it remains the Middle East's boomtown, albeit one temporarily facing some tough times.

The image revamp, however, has hit a roadblock as a leading ratings agency withdrew its ratings of a company owned by Dubai's hereditary ruler, citing among other reasons the "lack of market transparency."

In response to Standard & Poor's announcement, Dubai Holding Commercial Operations Group -- whose debt load is seen as the next litmus test of Dubai's ability to pay its bills -- accused the ratings agency of issuing "inaccurate statements" and a "lack of understanding" about its business. It also dropped the firm.