Moody's: Challenges ahead for Gulf issuers

The credit environment for corporate issuers in the Gulf Cooperation Council region will remain challenging, especially for selected vulnerable corporate issuers that need to address significant debt maturities by 2012, Moody's Investors Service said in a new report.

The 2012 wall of maturing debt poses a major challenge for the corporations as $28 billion worth of debt -- nearly one fifth of an estimated $145 billion of total debt outstanding - will mature that year, Moody's said.

The majority of this maturing debt is held by entities based in Dubai and Abu Dhabi, especially investment holding companies and real estate developers and related companies, the agency said.

Moody's noted the apparent lack of a catalyst that could stabilize the credit environment in the region. A stabilization would require a number of factors, including restoring confidence and improving transparency, along with an improved regulatory framework and greater capital market access, the agency added.

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