Standard & Poors on Monday downgraded and removed its rating of Dubai Holding Commercial Operations Group, an investment vehicle owned by the ruler of Dubai, citing insufficient information. Dubai Holding’s non financial arm, which spans real estate, business parks and hospitality interests, was lowered from BB+ to B on the grounds that group is likely to have weaker cash flow than previously expected, S&P said in a release. DHCOG, which includes hotel chain Jumeirah and Dubai Properties, has been hit hard by Dubai’s recession and real estate crash. Many analysts expect it to face debt repayment problems this year after another Dubai state-linked conglomerate, Dubai World, said in November that it would call a standstill on $26bn in debts. Analysts say Dubai Holding could have debts of about $10bn, $2bn of which mature this year, but a portion of that burden is held by the non-rated financial arms of the conglomerate, including Dubai International Capital and Dubai Group, rather than DHCOG. S&P said that lower sales because of the real estate crash would limit cash generation this year, with negative free cash flows in 2009 and this year, weakening liquidity and impaired ability to meet 2010 debt obligations. Dubai Holding – which has paid off a series of liabilities during the past year – made $100m in distribution payments on three of its bonds on Sunday, the company said. Inadequate timeliness of information and insufficient documentation prompted S&P to stop rating the company, which is owned by Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler. The government’s decision in November to distance itself from debt commitments held by Dubai World – even though a $4.1bn Islamic bond was repaid after Abu Dhabi bailed out its neighbour in December – has prompted ratings agencies to reconsider implicit government support for commercial entities owned by the government or members of the ruling family. “We now do not factor any ongoing government support into our rating because of this lack of information,” said the ratings agency.