Fitch: Dubai Holding view stable

Fitch Ratings said it revised the outlook on Dubai Holding Commercial Operations Group LLC to stable from negative.

The agency affirmed the long-term issuer default rating and senior unsecured rating at B as well as the short-term issuer default rating at B and recovery rating at RR4, which represents the RR cap for the United Arab Emirates.

The outlook revision reflects the company's progress with its non-core asset disposal program and better-than-expected operating performance in the hospitality and rentals divisions and reduced leverage, the agency said.

The company's ratings "are dependent on execution of targeted non-core asset disposals rather than [free cash flow] generation. The disposal of non-core assets, mainly for Dubai Property Group, and the unwinding of its investments will give [the company] the necessary financial flexibility to cope with the difficult real estate market in Dubai," Bashar Al Natoor, a director at Fitch, said in a statement.

The affirmation also reflects the company's ability to manage its net debt position and expectation that it will continue to reduce leverage over coming months, the agency noted.

The rating also reflects expectation that market prospects will remain under pressure, Fitch added.

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