Dubai Holding unit to repay $500 mn in bonds

A unit of Dubai Holding, a conglomerate owned by Dubai's ruler, said Wednesday that it will repay $500 million in bonds maturing on February 1, while Fitch agency revised the rating of the group from negative to stable. Dubai Holding Commercial Operations -- a hospitality, media and property group -- said in statement to Nasdaq Dubai financial market that it confirmed repayment of the $500 million maturing on February 1. The group "continues to meet its financial obligations as and when they fall due," the statement said. Fitch Ratings on Wednesday said it has revised the outlook on DHCOG to Stable from Negative. "The Outlook revision reflects the company's good progress with its non-core asset disposal programme and better than expected operating performance in the hospitality and rentals divisions and reduced leverage," it said. It noted that DHCOG "has no significant maturities before 2014" after Wednesday's announcement. Dubai Holding, the parent group that includes DHCOG and investment arm Dubai International Capital, reportedly has a total debt of $12 billion. Dubai government-related entities were hit by the financial crisis in 2009 as international finance dried out, while the emirate's real estate sector collapsed. DHCOG owns Dubai Properties Group, which was behind several major developments in Dubai, including the upmarket Jumeirah Beach Residence. It also controls TECOM Investments which runs business parks that host foreign entities from several sectors, including media and education. Its hospitality arm, Jumeirah Groups runs several hotels in Dubai and abroad, including the iconic sail-shaped Burj Al Arab, known as the world's only seven-star hotel. Dubai Holding is controlled by Dubai's ruler Sheikh Mohammad bin Rashed Al Maktoum.