Dubai developer faces rating evaluation

One of Dubai's leading property developers may have its credit rating cut by Moody's Investors Service, it has emerged.

The credit agency is assessing its position on six companies based in the emirate, including state-owned construction firm Emaar Properties.

Downgrading the company's credit rating may make it more difficult for Emaar to access the loans needed for it to fund new developments, something which could have an impact on the price of property in Dubai.

"Dubai has been hit harder than other economies in the region because of its higher debt load, relatively limited cash resources and a reliance on business sectors," Moody's explained in a statement, with senior vice president of the firm Philipp Lotter stating that the liquidity of companies operating in the emirate "cannot be taken for granted".

The announcement comes following recent research by property tracker reidin.com, which found that investment in Dubai's real estate sector fell during the final three months of 2009.

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