Reuters scoops missed loan payments by unit of Dubai ruler`s company

In an unmatched Nov. 11 Reuters story that moved credit default swaps, Reuters reported first that a unit of Dubai Holding had not made interest payments on two syndicated loans. The news about the Dubai Group, part of a conglomerate owned by the ruler, included one loan arranged by Citibank, signalling that the debt-laden emirate`s financial troubles are far from over. The cost to insure Dubai sovereign debt against default or restructuring hit a two-month high after the news, having consistently narrowed in recent months after another flagship conglomerate, Dubai World, reached a $25 billion restructuring deal with creditors. The story was partly matched by the FT a few hours later and widely picked up. Financial services firm Dubai Group is thought to be under significant financial strain and uncertainty around the ongoing debt problems in Dubai is high.