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    Several Dubai Government-Related Entities Downgraded and On Watch Negative Following Debt Restructuring Announcement

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    Standard and Poor's has downgraded DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone (fZE), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties PJSC. The ratings on Dubai Multi Commodities Centre Authority (DMCC) were affirmed, although they were placed on CreditWatch negative. The rating actions are the result of the announcement on Nov. 25 of the restructuring of the debt obligations of Dubai World and its subsidiary, Nakheel

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    Several Dubai Government-Related Entities Downgraded and On Watch Negative Following Debt Restructuring Announcement

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    Standard and Poor's has downgraded DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone (fZE), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties PJSC. The ratings on Dubai Multi Commodities Centre Authority (DMCC) were affirmed, although they were placed on CreditWatch negative. The rating actions are the result of the announcement on Nov. 25 of the restructuring of the debt obligations of Dubai World and its subsidiary, Nakheel

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    November 25, 2009

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    Standard and Poor's has downgraded DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone (fZE), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties PJSC. The ratings on Dubai Multi Commodities Centre Authority (DMCC) were affirmed, although they were placed on CreditWatch negative. The rating actions are the result of the announcement on Nov. 25 of the restructuring of the debt obligations of Dubai World and its subsidiary, Nakheel

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    895 views4 pages

    Several Dubai Government-Related Entities Downgraded and On Watch Negative Following Debt Restructuring Announcement

    Uploaded by

    Zerohedge
    Standard and Poor's has downgraded DIFC Investments LLC, DP World Ltd., Jebel Ali Free Zone (fZE), Dubai Holding Commercial Operations Group LLC (DHCOG), and Emaar Properties PJSC. The ratings on Dubai Multi Commodities Centre Authority (DMCC) were affirmed, although they were placed on CreditWatch negative. The rating actions are the result of the announcement on Nov. 25 of the restructuring of the debt obligations of Dubai World and its subsidiary, Nakheel

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    of 4

    November 25, 2009

    Several Dubai Government-Related Entities


    Downgraded And On Watch Negative
    Following Debt Restructuring Announcement
    Primary Credit Analyst:
    Farouk Soussa, PhD., Dubai (971)-4709-6820; [email protected]
    Secondary Credit Analysts:
    Emmanuel Dubois-Pelerin, Paris (33) 1-4420-6673; [email protected]
    Alexandra Dimitrijevic, Paris (33) 1-4420-6663; [email protected]

    DUBAI (Standard & Poor's) Nov. 25, 2009--Standard & Poor's Ratings Services
    today said it had taken rating actions on a number of Dubai-based government
    related entities (GREs) and transactions (for full details see "Ratings List"
    below). Standard & Poor's has downgraded DIFC Investments LLC, DP World Ltd.,
    Jebel Ali Free Zone (FZE), Dubai Holding Commercial Operations Group LLC
    (DHCOG), and Emaar Properties PJSC. All of these entities have been placed on
    CreditWatch with negative implications. The ratings on Dubai Multi Commodities
    Centre Authority (DMCC) were affirmed, although they were placed on
    CreditWatch negative. A CreditWatch negative placement also applies to the
    notes issued by Thor Asset Purchase (Cayman) Ltd. (Thor), which are
    securitized by cash flows from a revolving pool of existing and future
    receivables originated by Dubai Electricity and Water Authority (DEWA; not
    rated).
    The rating actions are the result of the announcement on Nov. 25 of the
    restructuring of the debt obligations of Dubai World and its subsidiary,
    Nakheel. In our view, such a restructuring may be considered a default under
    our default criteria, and represents the failure of the Dubai government (not
    rated) to provide timely financial support to a core government-related
    entity.
    This has led to a downward reassessment of our view of the propensity of

    www.standardandpoors.com/ratingsdirect 1
    Standard & Poor's. All rights reserved. No reprint or dissemination without S&P's permission. See Terms of Use/Disclaimer on the last page. 759530 | 301000387
    Several Dubai Government-Related Entities Downgraded And On Watch Negative Following Debt Restructuring
    Announcement

    the government of Dubai to support its GREs, resulting in multiple-notch


    downgrades on several rated GREs, in accordance with our enhanced criteria for
    rating GREs (see "Related Research" below).
    The risk of a restructuring and/or default at Nakheel had previously led
    us to reassess the likelihood of government support, leading to downgrades in
    June 2009. In October 2009, we reiterated our view that government support
    would need to be revisited in the event of a default at Nakheel (see "Related
    Research" below).
    We will resolve the CreditWatch placement on the rated GREs and Thor upon
    a review of the full impact on rated GREs of the Dubai World and Nakheel
    restructuring announcement. We expect this to be complete within the next
    three months.

    RELATED RESEARCH
    Enhanced Methodology And Assumptions For Rating Government-Related Entities,
    June 29, 2009

    What Factors May Affect S&P's View Of The Likelihood Of Extraordinary


    Government Support For Dubai-Based GREs? Oct 15, 2009

    RATINGS LIST
    Downgraded/Ratings affirmed/CreditWatch Action

    To From

    Issuer credit ratings

    DIFC Investments LLC

    BBB-/Watch Neg/A-3 A/Negative/A-1

    DP World Ltd.
    Jebel Ali Free Zone (FZE)

    BBB-/Watch Neg/A-3 BBB+/Negative/A-2

    Dubai Holding Commercial Operations Group LLC (DHCOG)

    BBB+/Watch Neg/-- A/Watch Neg/--

    Emaar Properties PJSC

    BBB-/Watch Neg/-- BBB+/Watch Dev/--

    Dubai Multi Commodities Centre Authority (DMCC)

    BB/Watch Neg/B BB/Stable/B

    Thor Asset Purchase (Cayman) Ltd. (Thor)

    Standard & Poor’s | RatingsDirect on the Global Credit Portal | November 25, 2009 2
    Standard & Poor's. All rights reserved. No reprint or dissemination without S&P's permission. See Terms of Use/Disclaimer on the last page. 759530 | 301000387
    Several Dubai Government-Related Entities Downgraded And On Watch Negative Following Debt Restructuring
    Announcement

    Senior secured*

    A/Watch Neg A

    *Support by Emirate of Dubai and Dubai Electricity and Water Authority

    N.B.—This list does not include all ratings affected.

    Additional Contact:
    Sovereign Ratings; [email protected]

    Complete ratings information is available to RatingsDirect on the Global


    Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect
    subscribers at www.ratingsdirect.com. All ratings affected by this rating
    action can be found on Standard & Poor's public Web site at
    www.standardandpoors.com. Use the Ratings search box located in the left
    column. Alternatively, call one of the following Standard & Poor's numbers:
    Client Support Europe (44) 20-7176-7176; London Press Office (44)
    20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm
    (46) 8-440-5914; or Moscow (7) 495-783-4011.

    www.standardandpoors.com/ratingsdirect 3
    Standard & Poor's. All rights reserved. No reprint or dissemination without S&P's permission. See Terms of Use/Disclaimer on the last page. 759530 | 301000387
    Copyright © 2009 by Standard & Poors Financial Services LLC (S&P), a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. No part of this information may be
    reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of S&P. S&P, its affiliates, and/or
    their thirdparty providers have exclusive proprietary rights in the information, including ratings, creditrelated analyses and data, provided herein. This information shall not be
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    Standard & Poor’s | RatingsDirect on the Global Credit Portal | November 25, 2009 4
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