Sunday, May 3, 2009

S&P Downgrades Seven Dubai Firms to Near Junk Rating

The rating agency is placing DIFC Investments, DP World, Emaar Properties, and Dubai Holding Commercial Operations, among others, on negative watch, saying it was unclear whether the Dubai government would step in to support these groups amid "deteriorating fundamentals" and talk of debt restructuring.

The move comes as a major surprise given that oil-rich Abu Dhabi has already come to the rescue of Dubai's ruling Maktoum family with a $20bn emergency loan, reports Ambrose Evans-Pritchard'

It's not all bad in Dubai,though. On my trip into NYC, I have been staying at the Waldorf Astoria. Over 200 rooms for the last month have been taken up by Dubai. Occasionally, you would see passing through the lobby some of the Dubai guests, dressed in traditional Arab garb. Others dressed in very bland western clothes.

They didn't talk much about what they were doing in NYC.

1 comment:

  1. Dubai, like Las Vegas, exceeded the Chandrasekhar limit. At least the DME made for a good Mezrich novel.

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