Dubai Holding Commercial Operations Group LLC, a real-estate and hospitality group owned by Dubai’s ruler, had its long-term credit rating cut one level by Fitch Ratings as the emirate’s property industry slumped further.
The company’s long-term issuer default rating was reduced to B, the fifth-highest non-investment grade, from B+, Fitch said in a statement today. The rating was removed from rating watch negative and assigned a negative outlook, Fitch said.
“Fitch expects that the market prospects have deteriorated further,” especially for Dubai Properties Group operations, the agency said. The negative outlook reflects the risks Dubai Holding Commercial faces as it needs to repay a 250 million Swiss-franc bond in July and a $500 million bond in February 2012 while its ability to refinance debt externally is limited, Fitch said.
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