No Dubai worries for ANZ, CBA quiet

ANZ Banking Group says it has no material exposure to Dubai World, the debt-laden key holding company of theDubai Government while the Commonwealth Bank of Australia is keeping quiet on its possible debt exposures.

"We work with a number of well established relationships throughout the Middle East but we do not believe there will be any material adverse impacts to these relationships as a result of the moratorium announced by Dubai World," an ANZ spokesman said today.

CBA says it will not discuss the exposures to the debt-laden Dubai World.

Asked whether CBA had direct exposure to either Dubai World or Dubai Commercial Operations Group LLC, a CBA spokesman said: "It is not appropriate for the Commonwealth Bank to discuss confidential client information".

The spokesman declined to comment further.

Comment was being sought from Westpac and National Australia Bank (NAB).

Late yesterday reports emerged that Dubai World sought to delay debt repayments, with its property unit Nakheel seeking a standstill agreement on a $US3.5 billion ($A3.8 billion) bond due for repayment on December 14.

Dubai World manages strategic global assets and had borrowed $US80 billion during Dubai's construction boom.

Reports that the Dubai government may default sent European equity markets plummetting over 3 per cent overnight.

Global ratings agency Fitch Ratings downgraded two companies related to the Dubai government.

Fitch downgraded the long-term credit rating of Dubai Holding Commercial Operations Group LLC and Dubai Electricity and Water Authority from A minus to triple-B minus with a negative outlook.

Fitch said in a statement on Friday the corporate entities "have strong operational and strategic ties with the Dubai government and the downgrades reflect Fitch's re-assessment of the ability of the Dubai government to support them."