Moody's cuts six Dubai issuers

Moody's Investors Service said it downgraded the ratings of all six government-related issuers in Dubai and kept them on review for possible downgrade.

DP World's issuer and debt ratings were downgraded to Baa2 from A3; Dubai Electricity & Water Authority's issuer and debt ratings were downgraded to Baa2 from A3; DIFC Investments' issuer and debt ratings were downgraded to Ba1 from A3; Jebel Ali Free Zone's issuer and debt ratings were downgraded to Ba1 from Baa1; and Dubai Holding Commercial Operations Group's issuer and debt ratings were downgraded to Ba2 from Baa1; and Emaar Properties' issuer ratings were downgraded to Ba2 from Baa1.

The action reflects news that the Dubai government is restructuring Dubai World, including a requested standstill on all financings to Dubai World and its subsidiary Nakheel, Moody's said.

Moody's said it has incorporated a substantial level of government support in the Dubai government-related issuers' ratings. However, reduced government support is now factored into the ratings, moving them within one to three rating categories of their fundamental credit profiles, the agency said.

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