Moody's reviews UAE issuers

Moody's Investors Service said it placed the ratings of government-related issuers in the United Arab Emirates on review for downgrade.

On review are Abu Dhabi National Energy Co.'s Aa2 issuer and debt ratings, Mubadala Development Co.'s Aa2 issuer and debt ratings, Tourism Development & Investment Co.'s Aa2 issuer and debt ratings, International Petroleum Investment Co. Aa2 issuer and debt ratings, Emirates Telecommunications Co.'s Aa2 issuer ratings, Dolphin Energy's Aa3 long-term debt rating and Aldar Properties' A3 issuer and debt ratings.

The review was prompted by a need to revalidate and possibly reconsider support assumptions following Dubai's recent decision to explicitly segregate its direct obligations from those of its government-related issuers and to pursue a debt restructuring at Dubai World, according to the agency.

Ratings benefit from very high implicit government support assumptions and assumption that even in most potential stress scenarios the government will not make a distinction between servicing its direct obligations and those of its state-owned companies, the agency said.

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