Dubai Ruler’s DHCOG Not to Restructure Debt, JPM Says (Update1) - BusinessWeek

Dubai Holding Commercial Operations Group LLC is unlikely to restructure debt after posting a $6.2 billion loss as it benefits from hotels, rental and telecommunications businesses, JPMorgan Chase & Co. said.

The U.S. bank is maintaining an “overweight” rating on Dubai Holding Commercial’s bonds, Zafar Nazim, a London-based analyst at the bank, wrote in an e-mailed report today. The loss attributable to shareholders comes after a year-earlier profit of 10 billion dirhams ($2.7 billion), the company said June 1.

“Cash generation from hotels and rental portfolio, value associated with Jumeirah and telecom stakes,” should enable the company to refinance near-term debt, Nazim wrote. “We do not expect DHCOG to restructure its debt, unlike its sister entities, Dubai International Capital and Dubai Group.”