DUBAI: Standard & Poor’s pulled its rating on a unit of Dubai Holding, dealing a fresh blow to the Gulf Arab emirate’s financial reputation and drawing fresh scrutiny from investors.
The ratings agency cut Dubai Holding Commercial Group (DHCOG) to B from BB+ and then withdrew the rating altogether, citing its “materially weaker” cash position and a lack of information.
“It was certainly a very severe note, and seems to lend credence to the doubts that have been expressed about Dubai Holding for some time,” said David Butter, director for the Middle East and North Africa at Economist Intelligence Unit, in London.
Dubai rocked global markets on Nov 25 when it sought a debt delay on US$26 billion (RM88.9 billion) linked to its flagship conglomerate, Dubai World.
DHCOG — the holding firm of Dubai Holding’s property, business parks and hospitality units which includes the planned Tiger Woods golf resort — is part of an investment vehicle owned by Dubai’s ruler.
In a statement, DHCOG dismissed the S&P announcement which it said contained inaccuracies and factual errors, and said the ratings agency did not understand its operations or its relationship with the Dubai government. — Reuters