Too true

26 January 2010 By Una Galani Follow @ugalani

A subsidiary of Dubai Holding, the private investment vehicle of the emirate’s ruler, says S&P doesn’t understand the group’s relationship with the government. Too true. No outsiders have much of a clue. For Dubai to regain investors’ trust, it can’t just talk about transparency.

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Standard and Poor's on Jan. 25 withdrew its rating on Dubai Holding Commercial Operations Group (DHCOG), citing a lack of information to maintain surveillance.

DHCOG is a whollyowned subsidiary of the Dubai Holding, the personal investment vehicle of the emirate's ruler Sheikh Mohammed bin Rashid alMaktoum.

In response to the move, DHCOG said "although [it] has been engaging with S&P and sharing adequate information frequently and in a transparent manner, S&P has, nevertheless, issued inaccurate statements coupled with factual errors that are misleading."

The group also criticised the rating agency's "lack of understanding of DHCOG's business, its operations and relationship with the Government of Dubai".

Fitch Ratings continues to rate DHCOG at BB. Moody's Investor Service rates DHCOG at B1. Both agencies have the issue on watch.

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