AFP
Moody's financial ratings service says it has downgraded the ratings for seven government-owned firms in the United Arab Emirates, including investment company Mubadala.
Moody's says its rating for Abu Dhabi-owned Mubadala, which manages a portfolio of billions of dollars of investments in energy, industry, health, infrastructure and real estate, has been downgraded from Aaa2 to Aaa3.
Moody's has also downgraded the ratings for Abu Dhabi-owned International Petroleum Investment Company from Aa2 to Aa3, and the Tourism Development and Investment Company from Aa2 to A1.
Explaining the three downgrades, the agency said on Thursday: "Moody's has decided to introduce a moderate distinction between their ratings and that of the sovereign" as there is no "explicit formal agreement" that the government will support them.
The Abu Dhabi National Energy Co was downgraded from Aa2 to A3, as "the government level of support factored into its ratings was lowered" due to the company's "increasing commercial orientation" and "lack of ongoing and regular" government funding.
Dolphin Energy, which transports gas from Qatar to the UAE, was downgraded from Aa3 to A1, reflecting the "company's commercial... business activities", Moody's said.
And UAE national telecommunications company Etisalat's rating was lowered from Aa2 to Aa3, as support from the federal government factored into its rating was reduced from "high to medium".
The outlook for those companies is stable, Moody's said.
The ratings agency also decreased the rating for giant Abu Dhabi real estate firm AlDar Properties from Baa2 to Ba1 (negative), due to "medium-term risks affecting its stand-alone profile inherent with the real estate sector".
At the end of November, Moody's downgraded the ratings of six companies owned by the Dubai government in the wake of the emirate's November 25 announcement that it was seeking a six-month debt freeze for its Dubai World conglomerate.
Dubai's debt is estimated at between $US80 billion and $US100 billion ($A88.4 billion and $A110.5 billion), but some experts say it could be as high as $US170 billion ($A178 billion).
Abu Dhabi came to Dubai's rescue with a $US10-billion loan, preventing Dubai World subsidiary Nakheel from defaulting on $US4.1 billion in debt that came due in mid-December.
The UAE is a federation of seven emirates led by oil-rich Abu Dhabi.
