Moody's: Dubai Bank direct uncertain

Moody's Investors Service said it placed the B1 long-term rating scale of Dubai Bank on review with direction uncertain, along with its Baa2/prime-3 local- and foreign-currency issuer ratings.

Moody's also placed on review with direction uncertain the provisional Baa2/prime-3 ratings of DB Sukuk Co. Ltd., a special purpose entity created to issue trust certificates to investors under $5 billion trust certificate issuance program launched on behalf of Dubai Bank.

The review follows news that the government of Dubai plans to inject capital into Dubai Bank, protect the interest of all depositors and ensure that Dubai Bank's operations remain uninterrupted, the agency said.

The aforementioned capital injection, however has yet to occur and there is still a lack of explicit information regarding its amount and timing, the agency said.

There also is uncertainty regarding the extent of the bank's impairments that triggered the government's decision to provide extraordinary support, Moody's said.

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