Dubai Credit Spreads Are ‘Unattractive,’ Morgan Stanley Says

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Investors should “unwind” exposure to Dubai government debt because the restructuring plan proposed for state-owned Dubai World won’t do enough to reduce the emirate’s debt burden, Morgan Stanley said.

“At current levels the risk/reward profile of Dubai sovereign spreads looks unattractive, and we advise investors to close their exposure to the credit,” Morgan Stanley’s London- based strategist Paolo Batori wrote in a research report dated today.END