Moody's assigns (P)A3/P-2 ratings to DB Sukuk Company

The outlook on the ratings of the Programme is positive, in line with the positive outlook on Dubai Bank's A3/Prime-2/D ratings.

DB Sukuk Company Ltd. (or the "Trust") is a special purpose entity created to issue Trust Certificates to investors ("Certificate Holders" and use the proceeds to acquire Shari'ah-compliant ijara (lease) and musharaka (co ownership) assets (representing interests in leased assets), through an undivided beneficial co-ownership interest.

As Obligor, Managing Agent and Investment Manager, Dubai Bank is responsible for managing the Trust assets and also provides full credit and liquidity support to ensure timely periodic payment to Certificate Holders.

The Programme's (P)A3/Prime-2 ratings and positive outlook are based on the current ratings of Dubai Bank.

This reflects Moody's opinion that the Trust Certificates, which will be unsubordinated, rank equally with all other senior unsecured obligations of Dubai Bank.

A positive outlook was assigned to Dubai Bank's issuer ratings when these were made public in August 2008.

The Certificate Holders are effectively exposed to Dubai Bank's senior credit risk, through its control of the Trust's assets, through the requirement, under the Management Agreement, to ensure provision of sufficient funds to satisfy any outstanding periodic distributions for the certificates, and through its obligation to pay the Purchase and Sale Price under the Purchase and Sale Undertaking Deeds.

Under the agreements, the Certificate Holders have no rights to cause any sale or disposition of the Trust's assets except as expressly provided under the Purchase Undertaking Deed and Sale Undertaking Deed.

Moody's understands that the Trust may be dissolved either at maturity or earlier if any of a number of specified dissolution events occurs.

The Certificate Holders especially have the benefit of an investor put right, which would be triggered if members of the Dubai ruling family and/or the Government of Dubai or any related entity were at any time to together cease to own or control directly or indirectly less than 51% of the issued share capital of Dubai Bank.

Moody's does not express an opinion on the structure's compliance with Shari'ah law, however we note that Dubai Bank has received an opinion from its Shari'ah Advisory Board that the transaction is Shari'ah compliant.

The Trust Certificates, and the various underlying legal agreements, are governed by English law, the laws of the Emirate of Dubai and the United Arab Emirates, as well as the laws of the Cayman Islands.