5-year CDS on Dubai, DP World rise; Nakheel prices down

LONDON Nov 30 (Reuters) - The cost of insuring the debt of Dubai against restructuring or default rose on Monday while the price of bonds issued by its subsidiary Nakheel ticked lower after comments by a Dubai government official.

Abdulrahman al-Saleh, director general of Dubai's department of finance, said the Dubai government will not guarantee Dubai World's debts, and creditors will be affected in "the short term" by the conglomerate's restructuring.

Five-year credit default swaps for Dubai rose to 594.6 basis points from an earlier 566.5 bps, according to CMA Datavision. The five-year CDS for ports operator DP World DPW.DI rose to 654 basis points from an earlier 632 bps.

Dubai World subsidiary Nakheel's Dec 2009 sukuk fell 2 points to 56 from Friday XS0277553052=R while its Jan 2011 issue fell 4 points to 54 XS0335122106=R. (Reporting by Natsuko Waki, Sebastian Tong and Carolyn Cohn) ((carolyn.cohn@reuters.com; Reuters Messaging carolyn.cohn.reuters.com@reuters.net; +44 207 542 6320))