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Possible Dubai defaults would hit UAE bank ratings

Possible multiple defaults related to Dubai World's debt restructuring could lead to downgrades in UAE bank ratings, although international banks exposed to the conglomerate will be unaffected, Moody's said.

Mardig Haladjian, general manager of EMEA banking group at the ratings agency, said United Arab Emirates banks rated by Moody's hold as much as a fifth of the $60 billion debt of Dubai World.

“If there were multiple defaults... ratings would obviously fall,” he told a conference call, adding that defaults were unlikely to cause ratings moves for international banks exposed to Dubai World. (Reuters)