S&P lowers ETA

Standard & Poor's said it lowered its long-term corporate credit rating on ETA Group to BB- from BB+.

At the same time, the debt rating on the group's $300 million senior unsecured bank loan due 2012, for which subsidiaries Emirates Trading Agency LLC, ETA Star Holdings Ltd., and Associated Construction and Investments Co. LLC are the joint borrowers, was also lowered to BB- from BB+.

In addition, all ratings were placed on Creditwatch with negative implications, the agency said.

"The downgrade and Creditwatch placement reflect its view of the likely adverse effects of the current economic slowdown on ETA's cyclical activities, especially those relating to what we see as the group's weaker-than-expected and increasingly volatile operations in Dubai," said credit analyst Mohammed Fayek.

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