Rating agency Moody's is expected to cut the rating of three banks in United Arab Emirates under the series of event that have taken place following the Dubai World's crisis. HSBC Bank Middle East may also see downgrading owing to uncertainties of loan recovery.

The agency said, "Moody's believes that despite the timely settlement of obligations falling due this week, the final form of the ongoing restructuring of the remaining debt owed by Dubai World has yet to be defined."

The banks placed under review includes Abu Dhabi Commercial Bank and its subsidiary ADCB Finance Ltd, Commercial Bank of Dubai and Dubai Bank all of which have significant exposure in Dubai World that grappled in crisis following its failure to meet its debt repayment obligations.

Many banks are hesitant of divulging the details of their level of exposure in Dubai World but market analysts said that the crisis would affect a large number of national and international banks.

The agency said, "Moody's also expects the prevailing difficult economic conditions in Dubai to lead to a further rise in distressed loans over the foreseeable future, thus testing the resilience of the ratings of the four named banks."