In a fresh blow to the emirate's financial reputation, the rating agency Standard and Poor's (S&P) downgraded Sheikh Mohammed bin Rashid al-Maktoum owned Dubai Holding to B from BB+. But it didn't go down well with the company which announced to drop S&P as its rating agency.

S&P has said, "Cash flow generation for Dubai Holding Commercial Operations Group is likely to be materially weaker than we initially expected." It expressed ignorance over the quantum of support by the government to the Dubai conglomerate that announced standstill on its debt obligations worth $22 billion for next six years, causing ripples in the financial circles.

However, the Dubai Holding COG reacted sharply over the downgrading issue adding that the agency has no understanding of DHCOG's business, its operations and relationship with the Government of Dubai. De-linking from S&P, Dubai Holding warned the rating agency for making alleged false and misleading information about the company.

Dubai Holding said in a statement, "S&P has issued inaccurate statements coupled with factual errors that are misleading. Therefore, DHCOG discredits and disagrees with the content of the latest S&P report dated January 25 2010."