Traders on the floor of the Dubai Financial Market stock exchange.
Traders on the floor of the Dubai Financial Market stock exchange.

Bank downgrade hits local stocks



Dubai stocks tumbled Wednesday as credit ratings agencies issued fresh warnings about risks to the emirate's economy from falling property prices and deteriorating banking assets. Emirates NBD, the country's largest lender by assets, fell to a three-month low after it was downgraded by Standard & Poor's (S&P). The credit ratings of Mashreqbank and Dubai Islamic Bank, the country's largest Islamic lender, were also cut by S&P as another ratings agency, Moody's Investors Services, warned that banks across the UAE are being forced to renegotiate and restructure loans with their clients. "Almost every single bank we talk to in the UAE is seeing an increased occurrence of renegotiating and restructuring loans, often with family-owned businesses," said Mardig Haladjian, who heads Moody's GCC bank coverage. Dubai stocks were among the world's worst performers yesterday, falling 3.4 per cent and taking total losses since the market hit its 2009 peak last month to more than 20 per cent. Regional stock markets led global declines as oil continued its slide and the leaders of the Group of Eight industrialised nations resolved to continue economic stimulus until a global recovery is assured. Moody's, which rates 16 UAE lenders, is stress-testing banks with a focus on name lending, which is based on reputation rather than financial criteria. The move was triggered by the financial restructuring of the family-owned Saad and Al Gosaibi groups in Saudi Arabia. "The risks to Dubai's economy have, in our view, increased," S&P said. "The economic slowdown, stock market decline and dropping real estate prices are raising significant hurdles for these Dubai-based banks. "Looking forward, we expect these factors to significantly slow business growth and lead to a deterioration in asset quality and profitability." S&P warned it may further downgrade the banks if their financial profiles, asset quality or capital ratios were further affected. UAE banks are generally considered to have solid capital buffers compared with their western peers, some of which have been forced into insolvency since the collapse of Lehman Brothers last year. But local banks have struggled to raise fresh funds after international banks started to withdraw capital from regional markets last autumn. S&P pointed to Dubai's strong dependency on property and construction, which accounts for roughly half of its economy. Some analysts expect property prices to fall as much as 70 per cent by the end of the year from their peak last year. The federal and Dubai governments have given strong support to banks by injecting fresh deposits and offering an emergency credit facility, but banks are still struggling to raise funds. S&P said it expected banks' loan books to severely deteriorate despite recent moves by the Government to recapitalise local lenders. "While these various measures represent important mitigating factors, we nevertheless expect the deterioration in banks' asset quality to be material," it said. A five-year economic boom fuelled by oil income and cheap foreign funds came to an abrupt halt last autumn, when the financial crisis hit the region. Last week, the Federal Government offered to guarantee bonds as another way to encourage banks and other companies to gain access to capital markets. S&P said it would keep Emirates NBD, Mashreqbank and Dubai Islamic Bank on negative outlook, which means there could be another downgrade in the future. Ratings affect the ease with which banks can borrow funds and higher ratings usually allow them to pay less interest. Meanwhile, Moody's yesterday cut the credit rating of Jebel Ali Free Zone's Dh7.5 billion (US$2.04bn) sukuk to "A2" from "A1". Moody's cited financial challenges faced by Dubai World, its parent company. Nakheel, another unit of Dubai World, has already entered restructuring talks to refinance its $3.5bn Islamic bond due in December.

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Conservative MPs who have publicly revealed sending letters of no confidence
  1. Steve Baker
  2. Peter Bone
  3. Ben Bradley
  4. Andrew Bridgen
  5. Maria Caulfield​​​​​​​
  6. Simon Clarke 
  7. Philip Davies
  8. Nadine Dorries​​​​​​​
  9. James Duddridge​​​​​​​
  10. Mark Francois 
  11. Chris Green
  12. Adam Holloway
  13. Andrea Jenkyns
  14. Anne-Marie Morris
  15. Sheryll Murray
  16. Jacob Rees-Mogg
  17. Laurence Robertson
  18. Lee Rowley
  19. Henry Smith
  20. Martin Vickers 
  21. John Whittingdale
MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

The BIO

Favourite piece of music: Verdi’s Requiem. It’s awe-inspiring.

Biggest inspiration: My father, as I grew up in a house where music was constantly played on a wind-up gramophone. I had amazing music teachers in primary and secondary school who inspired me to take my music further. They encouraged me to take up music as a profession and I follow in their footsteps, encouraging others to do the same.

Favourite book: Ian McEwan’s Atonement – the ending alone knocked me for six.

Favourite holiday destination: Italy - music and opera is so much part of the life there. I love it.

Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Aahid Al Khalediah II, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

5.30pm: Handicap (PA) Dh80,000 (T) 2,200m; Winner: Whistle, Harry Bentley, Abdallah Al Hammadi

6pm: Wathba Stallions Cup - Maiden (PA) Dh70,000 (T) 1,600m; Winner: Alsaied, Szczepan Mazur, Ibrahim Al Hadhrami

6.30pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Mumayaza, Antonio Fresu, Eric Lemartinel

7pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m; Winner: Hameem, Adrie de Vries, Abdallah Al Hammadi

7.30pm: President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m; Winner: Somoud, Richard Mullen, Jean de Roualle

8pm: President’s Cup – Listed (TB) Dh380,000 (T) 1,400m; Winner: Medahim, Richard Mullen, Satish Seemar

About%20My%20Father
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ELaura%20Terruso%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERobert%20De%20Niro%2C%20Sebastian%20Maniscalco%2C%20Kim%20Cattrall%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%202%2F5%26nbsp%3B%3C%2Fp%3E%0A
The specs: 2018 Mercedes-AMG C63 S Cabriolet

Price, base: Dh429,090

Engine 4.0-litre twin-turbo V8

Transmission Seven-speed automatic

Power 510hp @ 5,500rpm

Torque 700Nm @ 1,750rpm

Fuel economy, combined 9.2L / 100km

THE SCORES

Ireland 125 all out

(20 overs; Stirling 72, Mustafa 4-18)

UAE 125 for 5

(17 overs, Mustafa 39, D’Silva 29, Usman 29)

UAE won by five wickets

Match info

Liverpool 4
Salah (19'), Mane (45 2', 53'), Sturridge (87')

West Ham United 0

How to donate

Text the following numbers:

2289 - Dh10

6025 - Dh 20

2252 - Dh 50

2208 - Dh 100

6020 - Dh 200 

*numbers work for both Etisalat and du

Zidane's managerial achievements

La Liga: 2016/17
Spanish Super Cup: 2017
Uefa Champions League: 2015/16, 2016/17, 2017/18
Uefa Super Cup: 2016, 2017
Fifa Club World Cup: 2016, 2017

Match info

Arsenal 0

Manchester City 2
Sterling (14'), Bernardo Silva (64')

Emergency

Director: Kangana Ranaut

Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry 

Rating: 2/5

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

LA LIGA FIXTURES

Friday (UAE kick-off times)

Real Sociedad v Leganes (midnight)

Saturday

Alaves v Real Valladolid (4pm)

Valencia v Granada (7pm)

Eibar v Real Madrid (9.30pm)

Barcelona v Celta Vigo (midnight)

Sunday

Real Mallorca v Villarreal (3pm)

Athletic Bilbao v Levante (5pm)

Atletico Madrid v Espanyol (7pm)

Getafe v Osasuna (9.30pm)

Real Betis v Sevilla (midnight)

ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
Results:

6.30pm: Maiden | US$45,000 (Dirt) | 1,400 metres

Winner: Tabarak, Royston Ffrench (jockey), Rashed Bouresly (trainer)

7.05pm: Handicap | $175,000 (Turf) | 3,200m

Winner: Dubhe, William Buick, Charlie Appleby

7.40pm: UAE 2000 Guineas Group 3 | $250,000 (D) | 1,600m

Winner: Estihdaaf, Christophe Soumillon, Saeed bin Suroor

8.15pm: Handicap | $135,000 (T) | 1,800m

Winner: Nordic Lights, William Buick, Charlie Appleby

8.50pm: Al Maktoum Challenge Round 2 Group 2 | $450,000 (D) | 1,900m

Winner: North America, Richard Mullen, Satish Seemar

9.25pm: Handicap | $175,000 (T) | 1,200m

Winner: Mazzini, Adrie de Vries, Fawzi Nass

10pm: Handicap | $135,000 (T) | 1,400m.

Winner: Mubtasim, William Buick, Charlie Appleby