Most firms here are transparent (Interview)

All in all the worst is over. We are unlikely to see the magnitude of rating action of 2009, Philipp Lotter, Senior Vice-President, Moody's Middle East, told Emirates Business. "In fact, most of the companies that we rate are good as regards transparency," he said. However, transparency still needs to be improved but that is not a Gulf-specific issue. Parts of Europe were not transparent some years back. That comes with the gradual development in the market, he added.

So there are chances that some ratings may face downgrades in the near term because of the economic circumstances. Abu Dhabi government-related entities are also under review for downgrades. "There is a chance that some or all those ratings may face downgrades over the near term," he said. "What we are looking in Abu Dhabi is the willingness and not the ability to support."

Further explaining the aim of a credit rating exercise, Lotter said: "The objective is fairly unemotional. If you have a couple of 'AA' and 'A' ratings, you are not giving investors a choice as to how they want to structure their portfolio."

* username: rupertbu