Ratings agency Moody's Investor Service has warned that three Dubai government-related entities that have debt repayments worth $3.8 billion due in 2012 may face refinancing risks, and raised wider concerns over the emirate's potential need for further financial support in the absence of capital-raising measures.
Moody's, in a report published Tuesday, said Dubai Holding Commercial Operations Group, or DHCOG, Jebel Ali Free Zone, or JAFZ, and DIFC Investments were all facing refinancing risks and may experience ratings volatility as they move closer to next year's debt maturity dates.
"The refinancing risk affecting DHCOG, DIFCI and JAFZ is exacerbated by the fact that they entered the crisis with weak liquidity profiles and their reliance on what turned out to be weaker than anticipated growth trajectories for some business segments, which determined their ability to service their short to medium-term debt maturities," Moody's said.
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