S&P cuts Dubai Multi Commodities

Standard & Poor's said it lowered the long-term rating on Dubai Multi Commodities Centre Authority, which manages the Dubai Metals and Commodities Centre free zone, to B from B+.

The actions reflect the agency's view that DMCC will generate negative operating cash flow in 2010 as well as its reliance on unpredictable hedge fund values, large cash requirements and weak liquidity, according to S&P.

Ratings reflect the group's vulnerable business risk profile, as well as DMCC's portfolio of nascent and cash-burning businesses, the agency said.

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