Moody’s: Dubai to put non-core assets for sale
16 Feb 2010
(MENAFN) A report issued by Moody’s Investors Service said that Dubai is getting ready sell some of its performing non-core assets, after years of international acquisitions and financial prosperity, TradeArabia reported.
The Moody’s Weekly Credit Outlook report said that this move aims to address the debt of government-related issuers (GRIs) of up to $100 billion, of which nearly half will become due over the next three years.
The report expected the sale of Dubai’s investments to be a long and drawn-out process, as companies tend to avoid fire-sales and heavy discounts; however, the more troubled firms like Dubai World or some of the leveraged investment companies would not have a choice but to sell assets fast, with banks pressing for tangible restructuring aimed at partially settling payments on extended terms.
Moody’s pointed out that Dubai GRIs also own potentially lucrative stakes in international businesses that, in this changed environment of modesty and consolidation, must now be all regarded as non-core assets to be going on sale.