Moody's cuts Dubai issuers

Moody's Investors Service said it downgraded various government-related issuers in Dubai, concluding a review that began in August.

The ratings remain investment-grade and are substantially above those that would be based on the entities' stand-alone credit quality. This rating uplift reflects the strategic importance of the issuers to the government, Moody's said.

The downgrades reflect recent disclosures that reveal the increasing conditionality under which support may be provided, the agency added.

DP World's issuer and debt ratings were downgraded to A3 from A1.

Dubai Electricity & Water Authority's issuer and debt ratings were downgraded to A3 from A1.

DIFC Investments' issuer and debt ratings were downgraded to A3 from A1.

Jebel Ali Free Zone's issuer and debt ratings were downgraded to Baa1 from A3.

Dubai Holding Commercial Operations Group's issuer and debt ratings were downgraded to Baa1 from A3.

Emaar Properties' issuer ratings were maintained at Baa1.

The outlook for DP World, Dubai Electricity, DIFC and Jebel Ali Free Zone is negative, reflecting ongoing economic pressures.

The ratings of both Dubai Holding Commercial Operations and Emaar have been maintained on review for downgrade, pending the completion of an ongoing assessment of the impact of the proposed merger of Emaar with Dubai Holdings real estate operations, the agency said.

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