Dubai hit by rating blow

City A.M. Reporter
STANDARD & Poor’s (S&P) pulled its rating on a Dubai investment firm owned by the emirates’ ruling family yesterday, voicing fears over long-term financing and adding to investor anxiety about the Gulf Arab state.

The ratings agency cut Dubai Holding Commercial Group (DHCOG), a unit of major investment vehicle Dubai Holding, to B from BB+ and then withdraw the rating altogether in a fresh blow to the Kingdom’s reputation. S&P said it had concerns about the financial strength of the firm and complained that “insufficient” information had been provided about it. Dubai Holding, DHCOG’s parent firm, holds stakes in a number of firms including the London Eye tourist attraction and US hedge fund Och-Ziff.

Dubai rocked global markets on 25 November when it sought a debt delay on $26bn (£16bn) linked to its flagship conglomerate, Dubai World.