Moody's cuts six Dubai issuers

Moody's Investors Service said it downgraded all six Dubai government-related issuers, including DP World to Ba1 from Baa2, Dubai Electricity & Water Authority to Ba2 from Baa2, Jebel Ali Free Zone to B1 from Ba1, Dubai Holding Commercial Operations Group to B1 from Ba2, Emaar Properties to B1 from Ba2 and DIFC Investments to B2 from Ba1.

This downgrade reflects recent comments from government officials, which cause the agency to believe that no meaningful government support should be assumed for any entity that is not directly part of or guaranteed by the government, Moody's said.

All ratings now reflect the respective company's stand-alone credit profile with the exception of Dubai Electricity & Water Authority and DIFC Investments, whose revised ratings include a one-notch uplift for government support recognizing their stronger strategic linkage to Dubai's core economic development policies, the agency said.

All ratings remain on review for further downgrade.

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