#Dubai’s GEMS Downgraded Deeper Into Junk by Moody’s Over Economy - Bloomberg

Dubai’s GEMS Downgraded Deeper Into Junk by Moody’s Over Economy - Bloomberg:

GEMS Education had its ratings cut by Moody’s Investors Service, a decision it said reflected the impact on the company’s credit ratios of the coronavirus pandemic and a weakening domestic economy. 


Moody’s downgraded the corporate family rating of GEMS MENASA Cayman Ltd., the entity that owns and operates schools in the United Arab Emirates and abroad, to B3 from B2, according to a statement on Monday.

The company’s probability of default rating was lowered to B3-PD from B2-PD and several of its debt facilities to B3 from B2. Corporate families ranked B-PD are “considered speculative and are subject to high default risk,” according to Moody’s.

The ratings company cited “the negative effects of the coronavirus pandemic on the economic environment in the UAE, and in Dubai in particular.”