Standard & Poor's has warned of a potential downgrade of the credit rating of DIFC Investments, the investment arm of Dubai's financial free zone, if it cannot make progress selling assets and refinancing its upcoming debt repayments by the beginning of next year.
The credit rating agency raised the alarm in a report this week warning of the sluggish pace of asset sales at DIFC Investments, which is attempting to repay a US$1.25 billion (Dh4.59bn) sukuk that comes due next June.
While S&P said it was highly likely that DIFC Investments would receive support from the Dubai Government, the ratings agency warned that a lack of progress in asset sales or refinancing efforts could trigger a downgrade of DIFC Investments' credit rating.
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