Moody's cuts Dubai Islamic Bank

Moody's Investors Service said it downgraded Dubai Islamic Bank PJSC's issuer ratings to Baa1/P-2 from A1/P-1 and changed the outlook to negative. The senior unsecured debt ratings were downgraded to Baa1 from A1.

Ratings were placed under review in August due to weakening economic conditions in Dubai.

Moody's said the downgrade reflects deterioration in Dubai's economy, exacerbated by the restructuring of Dubai World and its subsidiary Nakheel.

Exposure to the construction and property sector, as well as Dubai government-related entities, are significant and could entail material losses, the agency noted.

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