International ratings agency Fitch said Wednesday it had downgraded its ratings on a Dubai holding company owned by the ruler of the Gulf emirate.

Fitch said its action regarding Dubai Holding Commercial Operations Group (DHCOG) reflected the agency’s uncertainty as to the level of government financial support for the company in case of need.

It added that DHCOG, which has interests in leisure, real estate, technology, telecommunications and services, is 97.4 per cent owned by Sheikh Mohammed bin Rashid al-Maktoum, the prime minister of the United Arab Emirates and ruler of the Dubai emirate.

Fitch said its long-term credit rating on DHCOG had been lowered to BB from BBB, with the company remaining on its negative rating watch. The short-term rating has been downgraded to B from F3 and removed from negative rating watch.

“Today’s rating action reflects a further review of the level of government support for financial obligations of DHCOG.

“This follows significant changes in the policy environment for support of Dubai-based entities witnessed over the past week.”

Dubai has been at the center of a financial storm since an announcement last Wednesday by another state-controlled conglomerate, Dubai World, that it was seeking a six-month moratorium on debt payments.

Investors were later alarmed when the head of the Dubai finance department said the government never intended to guarantee Dubai World’s 59 billion dollars in debt, the lion’s share of the city state’s obligations totalling 80 billion dollars.