Moody's optimistic about Dubai World subsidiary 08-04-2010
Issue Codes Dubai Property News
Posted by Neil King
The credit ratings agency Moody's has confirmed a stable outlook on DP World, a port operator owned by the government backed conglomerate Dubai World.
It added that it has removed the threat of a downgrade on DP World after being encouraged by its recent financial performance.
Moody's said government restructuring plans for Dubai World announced last month, which included an injection of $9.5billion in funds, had buoyed the conglomerate and its subsidiaries.
"The recent restructuring proposal for the parent company has shown a renewed public commitment to safeguard healthy subsidiaries of Dubai World, including DP World," said Philipp Lotter, senior vice president in Moody's Corporate Finance Group.
Moody's noted that DP World has a strong liquidity position and has already recorded a four per cent increase in volumes for the first two months of 2010.
This week, a range of business interests in the UAE hailed the government announcement that a Federal Credit Bureau will be set up to promote strong risk management practices in the country.
