27.11.2009
Global credit-rating agency Standard & Poor's (S&P) has placed four of Dubai’s banks on credit watch after the Dubai Government’s flagship holding company Dubai World asked for a standstill agreement on all of its financing until 30 May 2010.
Emirates Bank International PJSC, National Bank of Dubai, Mashreqbank PSC and Dubai Islamic Bank PJSC were all given an A- long-term rating on S&P’s CreditWatch, while the rating agency also affirmed its A2 short-term ratings on National Bank of Dubai, Emirates Bank International and Mashreqbank.
S&P said its actions reflected the large exposure these banks had to Dubai World.
The news of Dubai World’s request for a debt standstill yesterday also called into question the ability of Dubai to repay its debts.
S&P said yesterday that Dubai World's announcement “may be considered a default” and “represents the failure of the Dubai government (not rated) to provide timely financial support to a core government-related entity”.
Site design by Whitespace Publishing. Web development and hosting by Tibus Ireland | powered by HandsOn
Bookmark with: