26 Jan 2012
(MENAFN) Dubai Holding Commercial Operations Group (DHCOG), a unit of Dubai Holding, said that it would repay USD500 million debt at the beginning of next month, reported Emirates 24/7.
The firm, which owns the Jumeirah hotel chain and other investments, including a division that operates many of Dubai’s free-trade zone business parks, added that it would repay the bonds through funds from its internal cash flow.
On the other hand, DHCOG’s outlook was revised by Fitch Ratings from negative to stable; moreover, the ratings firm affirmed the UAE’s company’s long-term Issuer Default Rating (IDR) and senior unsecured rating at ‘B’.
Fitch explained that the revision was due to DHCOG’s good improvement with its non-core asset disposal program, and the strong operating performance in the hospitality and rentals divisions and reduced leverage, adding that with the repayment of USD240 million in July 2011 and USD500 million next month, DHCOG has no major maturities before 2014.
It is worth noting that the disposal of non-core assets, especially for Dubai Property Group, and the unwinding of the company’s investments will give DHCOG the necessary financial flexibility to handle the difficult real estate market in Dubai, according to Fitch.
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