dubai makes progress in cutting debt but challenges remain
Last Updated : GMT 14:05:10
Arab Today, arab today
Arab Today, arab today

Dubai makes progress in cutting debt, but challenges remain

Arab Today, arab today

Arab Today, arab today Dubai makes progress in cutting debt, but challenges remain

Dubai - Arabstoday

The Dubai government and its state-owned entities have come a long way in tackling its maturing debt during the last two years, with the government now facing significantly lower liabilities, rating agency Moody\'s Investor Services said yesterday. Despite the consistent improvement in governance, transparency and discipline shown by Dubai entities that resulted in the upgrading of credit ratings for some of these entities, Moody\'s said that some of these entities continue to face refinancing challenges. \"The Dubai government\'s disclosures since 2009 have shown a redefinition of its strategic holdings that Dubai now considers as warranting its support. \"We have seen a significant reduction in government liabilities,\" said David Staples, Managing Director, EMEA Corporate Finance, at Moody\'s. In total, Moody\'s has identified $101.5 billion of debt linked to the Dubai government and its state-owned non-financial corporates. According to Moody\'s assessment, Dubai\'s contingent liability from state-owned corporates (excluding the debt of state-owned banks) is around $33.7 billion — significantly below Dubai\'s state-owned corporate debt of $68.6 billion, and excluding $5.1 billion of government-guaranteed corporate debt. Direct debt Based on publicly available government data, Moody\'s estimates the direct debt of Dubai at around $27.9 billion, of which $18.45 billion was raised from the Abu Dhabi Government and the UAE Central Bank to capitalise the Dubai Financial Support Fund. The rating agency also believes that Dubai\'s likely direct exposure to contingent liabilities is further reduced to $12.7 billion because some of the state-owned entities that are eligible for support are not likely to need it, namely, DP World Limited and the Dubai Electricity and Water Authority. Despite the reduced government liabilities, Moody\'s has warned that some entities such as Dubai Holding Commercial Operations Group, Jebel Ali Free Zone and DIFC Investments, which together hold around $3.8 billion of debt maturing in 2012, are expected to face refinancing risks. \"We expect these companies could face rating volatility as they move closer to their debt maturities based on the ability and willingness of the government of Dubai to support these entities,\" said Frank Nowak, Moody\'s EMEA Corporate Finance analyst. \"We are not ruling out any options available to these entities ranging from direct support from the government and refinancing through local banks. But as the maturities approach, these entities face execution risk which is a concern for investors,\" he said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

dubai makes progress in cutting debt but challenges remain dubai makes progress in cutting debt but challenges remain

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

dubai makes progress in cutting debt but challenges remain dubai makes progress in cutting debt but challenges remain

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday