The absence of Dubai government guarantees in support of the Dubai Group restructuring is credit positive for Dubai's sovereign credit worthiness, Bank of America Merrill Lynch (BofA) said in a report yesterday.
"While decreasing contingent liabilities is positive for sovereign creditworthiness and CDS [credit default swaps], the immediate impact may be trumped by broader Dubai Inc restructurings and sentiment," Jean-Michel Saliba, a BofA economist wrote in a note.
However, he added that the decision was broadly shrugged off by the market.
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