Dubai faces refinancing risks, says Moody's
US$10b of debt due to mature next year of which 3 firms account for US$3.8b (DUBAI) Dubai, which has restructured US$41 billion of debt related to its flagship conglomerate and has about US$10 billion due next year, faces refinancing risks related to some upcoming maturities, Moody's said yesterday. It said the main risk relates to three firms - Dubai Holding Commercial Operations Group, part of the ruler's private holding company, DIFC Investments (DIFCI) and Jebel Ali Free Zone - which have US$3.8 billion due next year. The rating agency anticipated less government support now than Dubai World received two years ago. The Dubai government, backed by wealthy Abu Dhabi, supported Dubai World and its property arm Nakheel through the debt crisis but has since made clear it will only deploy its limited resources to back strategic entities. 'We believe it is DIFCI that is most likely to rely on direct government support in conjunction with refinancing its maturing debt obligations in 2012,' Moody's said, noting the Dubai government is directly exposed to DIFCI, which runs the city's financial freezone, having given it two loans. The Financial Times said yesterday that Dubai had raised the prospect of restructuring some bonds and is pursuing other options to help state-related entities meet their obligations. Those include raising US$2 billion in funds from liquid local banks, it said. 'We are working hard to meet all our liabilities but times are different. We are more confident we can negotiate a commercial deal with bondholders,' a senior government official is quoted as saying. In addition to the Dubai World restructuring, Dubai entities have been refinancing loans over the past two years but there has been no default on a public bond. Although 'significant progress' has been made by the government and state-owned companies to tackle maturing debt, the rating company said in a report yesterday that it remains concerned about the emirate's maturing debt. 'Moody's has seen very few real signs of material and voluntary deleveraging,' said David Staples, managing director for GCC Corporate ratings at Moody's. - Reuters, Bloomberg On Wed, Dec 7, 2011 at 9:35 AM, RAJESH DESAI <[email protected]> wrote: > Ranbaxy Laboratories rose after the company said it has launched > authorised generic version of Caduet in the United States. > > > On Tue, Dec 6, 2011 at 2:55 PM, karishma suvarna < > [email protected]> wrote: > >> *Dalal Street’s Rumor-mill* >> * >> * >> • Abnormal movement on the counter of One Life Capital warranting >> watch dog body inspection. Will it materialize soon? >> • The month of December 2011 is crucial for the bourses as it is the final >> month of exit from FIIs. Any fall hereafter will provide golden >> opportunity >> to part medium term funds, opine seasoned operators. >> • Informed buying is witnessed on the counter of Tree House. According >> to punters, scrip is set to scale new highs in coming months. >> • Although MRF posted good numbers for the concluded quarter, but will >> it consider bonus is a million dollar question. >> • Colgate Palmolive is worth considering on declined level for medium >> term rewards, opine bulls from Mumbai. >> • Investment brokers recommend Varun Ind. to their HNI clients. Scrip >> is set to northward on bulls chase. >> >> > > > -- > CA. Rajesh Desai > > -- CA. Rajesh Desai -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
