Fitch Ratings has maintained Dubai Holding Commercial Operations Group's (DHCOG) long-term Issuer Default Rating (IDR) and senior unsecured 'B+' ratings, respectively on Rating Watch Negative (RWN).

The rating action also affects Dubai Holding Commercial Operations Group's MTN. The action follows last week's statement by Mohammed al-Shaibani, the director of the Ruler's Court, in relation to a prospective debt restructuring, in particular, the investment arm of Dubai Holding rather than DHCOG itself.

DHCOG's management has confirmed to Fitch that the company is ring-fenced from the reported restructuring at the Dubai Holding investment arm.

The company has also confirmed that it still has access to funds from the Dubai Financial Support Fund for drawdown, the availability of which is a contributory factor to Fitch's one-notch uplift from DHCOG's 'B' standalone rating.

The maintenance of the ratings on RWN further reflects Fitch's concern that the deterioration in market conditions has weakened DHCOG's operational performance, and will result in a weaker credit profile. The RWN also reflects short-term liquidity risk associated with debt maturities at DHCOG.

Resolution of the RWN will be contingent upon the receipt and review of DHCOG's revised business plan, confirming the group's ongoing ability to generate cash flow and retain adequate  liquidity.

The removal from RWN will also be contingent upon DHCOG successfully refinancing its $555m RCF facility, which will contribute positively to a more manageable maturity profile over the medium term, or obtaining additional government funds to repay the facility.

Fitch aims to resolve the RWN within the next few months. This could result in a downgrade of DHCOG's ratings by more than one notch.-