Moody's downgrades Dubai's DIFC Investments, UAE Investment Companies, Banking & Investment - Maktoob Business

Ratings agency Moody's lowered its rating on Dubai's DIFC Investments and said the probability of default was higher due to lack of government support and concerns about Dubai's ongoing debt restructuring.

"DIFCI's downgrade reflects the group's highly leveraged financial profile, its expected heavy reliance on asset disposals in the coming 12-24 months ... and its continued negative free cash flow generation," said Niel Bisset, senior vice president at Moody's in London in a statement.

Moody's said the downgrade also reflected the "significant impairments" in DIFCI's real estate portfolio which contributed to its 2009 loss.