Emaar MGF says no impact of Dubai crisis

Ahead of its upcoming initial public offer to mop up about Rs 4,000 crore, realty firm Emaar MGF today said it would not be impacted by Dubai's debt repayment crisis, which has led to a rating downgrade for its Middle-East promoter.

Emaar MGF, a joint venture between Dubai-based Emaar Properties and India's MGF Development, said in a statement that its operations were only in India and the developments in Dubai would have no impact.

"Our business and funding plans are on track," a company statement said.

"Emaar has not asked for any external support and maintains good financial strength. Emaar Properties remains committed to its investments and Emaar MGF's business in India," it added.

However, rating agencies Standard and Poor's and Moody's downgraded their ratings for Dubai-based Emaar Properties.

It was part of the two agencies downgrading ratings for a host of Dubai-related entities in the wake of Dubai World, the state-owned investment holding company, asking for time till May 2010 to meet its debt obligations worth $59 billion.

S&P lowered Emaar Properties' rating by two notches to BBB-, while Moody's cut the rating from Baa1 to Ba2.

Emaar MGF, which had previously cancelled its public issue plans in the midst of a market downturn due to global financial crisis, is currently in the process of coming out with an IPO in India and is awaiting the regulator's nod for the same.