Moody's Investors Service today downgraded all six Dubai government-related issuers (GRIs). This rating action follows recent comments and statements from government officials, which cause us to believe that no meaningful government support should be assumed for any entity that is not directly part of or formally guaranteed by the government. As a result, Moody's has reduced the government support assumptions for all six issuers. All ratings now reflect the respective company's stand-alone credit profile (baseline credit assessment) with the exception of Dubai Electricity & Water Authority (DEWA) and DIFC Investments, whose revised ratings include one notch uplift for government support recognising their stronger strategic linkage to Dubai's core economic development policies.
Moody's has also downgraded various baseline credit assessments to reflect (1) increased liquidity challenges in a tougher financing environment that we expect will continue for a protracted period, and (2) the longer term implications thereof on Dubai's economy.
Ratings affected by today's rating actions include the following:
- DP World issuer and debt ratings were downgraded to Ba1 from Baa2;
- Dubai Electricity & Water Authority (DEWA) issuer and debt ratings were downgraded to Ba2 from Baa2;
- Jebel Ali Free Zone (JAFZ) issuer and debt ratings were downgraded to
B1 from Ba1;
- Dubai Holding Commercial Operations Group (DHCOG) issuer and debt ratings were downgraded to B1 from Ba2;
- Emaar Properties issuer ratings were downgraded to B1 from Ba2;
- DIFC Investments (DIFCI) issuer and debt ratings were downgraded to B2 from Ba1.
All ratings remain on review for further downgrade.
