Corporate credit quality in GCC to stabilise

A report by ratings agency Moody's has said that corporate credit quality in the GCC will stabilize or recover slowly in 2010. Prospects for longer maturities on high quality credit over shorter tenors would contribute to a stabilisation of the regional market, the report said. 'The main drivers of credit quality will be industry-specific fundamentals as well as the companies' ability to improve liquidity profiles and to extend debt maturities, which have remained comparatively short and clustered,' said Philipp Lotter, Dubai-based Senior Vice President in Moody's Corporate Finance Group and co-author of the report.