PRESS RELEASE: S&P FAQ Answers Queries On Dubai GREs' Debt Maturities In 2012

Monday, Dec 26, 2011

 
The following is a press release from Standard & Poor's: 

DUBAI (Standard & Poor's) Dec. 26, 2011--Although the Dubai economy is 
beginning to bounce back, rated Dubai government-related entities are up 
against significant risks, said Standard & Poor's Ratings Services in a 
report, "Dubai Government-Related Entities Face Debt Maturities And 
Refinancing Issues In 2012," published today on RatingsDirect on the Global 
Credit Portal. 

"Risks linked to the weakening global economic outlook, the Arab Spring, and 
volatile equity and bond markets have raised concerns as Dubai GREs face large 
debt maturities and refinancing needs next year," said Standard & Poor's 
credit analyst Tommy Trask. 

Standard & Poor's rates five Dubai-based companies that it considers to be 
GREs under its criteria: Dubai Electricity and Water Authority, 
		DP World
		 Ltd., 
Emaar Properties PJSC, 
		DIFC Investments
		 LLC, and Jebel Ali Free Zone (FZE). In 
our ratings, we factor in our view of the likelihood and extent of any 
extraordinary support that the Dubai government would provide to these GREs in 
the event of their financial distress. The results range from no uplift for DP 
World and Emaar to three notches of uplift for DEWA and 
		DIFC Investments
		 (see 
table). 

We have received several questions from investors and market participants 
about the likelihood of government support and how we factor it into our 
ratings on these GREs. Here, we answer those questions. 
     -- What are the main risks that Standard & Poor's sees for the 
Dubai-based GREs it rates? 
     -- How does Standard & Poor's view the recent statements that Sheikh 
Ahmed bin Saeed Al Maktoum, chairman of Dubai's Supreme Fiscal Committee, made 
on potential debt restructuring? 
     -- When does Standard & Poor's consider debt restructuring as tantamount 
to a default? 
     -- How does Standard & Poor's factor government support and ownership 
into its ratings on Dubai-based GREs? 
     -- What is the time frame for the current negative and positive outlooks 
on the Dubai-based GREs that Standard & Poor's rates? 
     -- How does Standard & Poor's view the default probability on bonds and 
sukuk compared with that of bank loans and trade related liabilities? 

 
The report is available to subscribers of RatingsDirect on the Global Credit 
Portal at www.globalcreditportal.com.  If you are not a RatingsDirect 
subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 
or sending an e-mail to research_request@standardandpoors.com. Ratings 
information can also be found on Standard & Poor's public Web site by using 
the Ratings search box located in the left column at www.standardandpoors.com. 
 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) 495-783-4009. 

Primary Credit Analyst: Tommy Trask, Dubai (971) 4-372-7151; 
                        Tommy_Trask@standardandpoors.com 
Secondary Contacts: Karim Nassif, Dubai +971 (0) 4 372 7152; 
                    karim_nassif@standardandpoors.com 
                    Kai Stukenbrock, Frankfurt (49) 69-33-999-247; 
                    kai_stukenbrock@standardandpoors.com 
Additional Contacts: Industrial Ratings Europe; 
                     CorporateFinanceEurope@standardandpoors.com 
                     Infrastructure Finance Ratings Europe; 
                     InfrastructureEurope@standardandpoors.com 

 
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(END) Dow Jones Newswires