The Dubai government and its entities are facing debts of around $80 billion, and authorities have assured investors that the emirate will meet its financial obligations.
November 11, 2009 3:32 by kippreport
Despite the government ‘s measures, ratings agency Moody’s downgraded five Dubai government-linked entities last week, because of concerns about their ability to fulfill their debt obligations. The companies include DP World, Dubai Electricity & Water Authority (DEWA), DIFC Investments, Jebel Ali Free Zone and Dubai Holding Commercial Operations Group.
“The government has reiterated that GRIs (government-related issuers) debt obligations … are not regarded as obligations of the government … and that the government is under no obligation to extend support to any such GRI,” Moody’s said in a statement.