Fitch Ratings downgraded notes issued by UAE CMBS VEHICLE NO. 1 in the aftermath of Dubai World’s announcement that it would seek a six-month standstill of payments on its debt and that of its developer unit Nakheel.

“The proposed standstill on Dubai World and Nakheel obligations is a major negative shock to sentiment in Dubai, the UAE and the region more generally, where sovereign support has traditionally been strong,” Fitch said in a statement.

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