DUBAI, United Arab Emirates (AP) — Fitch is cutting its ratings on two companies tied to the Dubai government.
The credit rating firm says it made the downgrades Wednesday because of what it called the emirate's worsened economic outlook and the likely pressure this will put on the Gulf city-state's finances.
The downgrades affect Dubai Holding Commercial Operations Group, a holding company owned by Dubai's ruler, and state-owned utility Dubai Electricity and Water Authority.
Fitch cited poor transparency in cutting the ratings, though it acknowledges the benefit of continued government support for the companies.
Concerns have grown about Dubai's debt level in light of the world financial crisis.