S&P cuts six Dubai companies' view to negative

Standard & Poor's said it affirmed ratings and revised the outlook on six Dubai-based government-related entities to negative from stable. They are DIFC Investments LLC, DP World Ltd., Dubai Holding Commercial Operations Group LLC, Dubai Multi Commodities Centre Authority, Jebel Ali Free Zone and JAFZ Sukuk Ltd.

"The outlook revision reflects the impact of the difficult global macroeconomic and financing environment on the Emirate of Dubai (not rated), to which the ratings on these six entities are directly linked," S&P analyst Farouk Soussa said in a statement.

"The medium-term risks to Dubai's economy have, in our view, increased as demand in the all-important real estate sector shows clear signs of abating, raising the possibility of a sharp correction in the real estate market, and an associated contraction in development and construction," he added.

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