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Moody’s downgrades four UAE banks after Dubai debt crisis

CREDIT rating agency Moody’s yesterday put another four United Arab Emirates banks on credit watch as a the fallout from Dubai’s debt troubles continues to affect the region.

Abu Dhabi Commercial Bank and its subsidiary ADCB Finance, the Commercial Bank of Dubai, Dubai Bank and HSBC Middle East Limited have all been put under review for a possible ratings downgrade.

The move follows a $10bn (£6bn) bailout from neighbouring Abu Dhabi to help Dubai pay off its debts. The emirate shocked global markets last month when its flagship conglomerate, Dubai World, said it was struggling with its repayments. Abu Dhabi stepped in to help the company repay a bond that was due to mature on Monday. “The Dubai World incident will have further repercussions on the already zweakened corporate scene.” in Dubai,” Moody’s said.