Aug. 19 (Bloomberg) -- Investors in bonds sold by United Arab Emirates borrowers may have to wait longer to recoup their money after a default because laws are untested and less favorable to creditors than in ``more developed jurisdictions,'' Standard & Poor's said.

S&P classified the sheikhdom's insolvency regime as ``Group B,'' the middle of its three rankings based on recovery rates. In such a regime, court proceedings can exceed two years and be ``somewhat unpredictable,'' delaying recoveries to bondholders, the New York-based ratings firm said in a report today.

``Laws and regulations addressing creditors' rights are not as evolved as those in many more developed jurisdictions,'' S&P managing director James Penrose said in the report. ``The local laws and regulations relating to creditors' rights in the event of a debtor insolvency remain substantially untested'' with no major corporate insolvency in the region to draw from, he said.
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