Moody's takes action on Dubai issuers

Moody's Investors Service said it has taken multiple rating actions on four government-related issuers in Dubai.

The A1 ratings of DP World, DIFC Investments and Dubai Electricity & Water Authority were placed on review for possible downgrade. The ratings of Jebel Ali Free Zone were downgraded to A3 from A2 and placed on review for further possible downgrade.

The A3 ratings of Dubai Holding Commercial Operations Group and the Baa1 ratings of Emaar Properties were unchanged and remain on review for downgrade pending the merger of Dubai Holding's real estate activities with Emaar.

The actions reflect the limited transparency on government policy and criterion for government-related issuers in Dubai, Moody's said.

The agency said it takes comfort in the government's recent creation of a support fund, which will provide financial support on commercial terms to government-related issuers that fulfill certain criteria.

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