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Fitch cuts Dubai companies' ratings on debt fears

Fitch cuts Dubai companies' ratings on debt fears

A leading credit rating firm is cutting its ratings on two key Dubai state-linked companies over concerns about the deeply indebted city-state's ability to repay its lenders.
Fitch Ratings dropped its long-term ratings on Dubai Holding Commercial Operations Group and utility provider Dubai Electricity and Water Authority by two notches on Thursday to 'A-'.
DHCOG is effectively owned by the sheikdom's ruler and controls high-profile investments such as luxury hotel operator Jumeirah Group and Tatweer, a developer building the stalled theme park complex Dubailand.
Fitch also cut its ratings for seven UAE banks. It says the federal and Dubai governments' ability to support the banks has decreased.