Ratings agency Moody's wants more clarity on the bailout of Dubai Bank before taking ratings action, it said in a statement.
The ratings agency put the lender on review with direction uncertain after government took control of the lender and said it would give it a capital injection.
"The standalone ratings could still be lowered if the loan portfolio cleanup and recapitalisation is not concluded in the immediate future," Khalid Howladar, Moody's senior credit officer in Dubai, said in the statement.
"Or if Moody's considers DB's post-rescue creditworthiness to be better-reflected in a lower rating."
At the end of 2009, Dubai Bank had total assets of Dh17.4 billion ($4.74 billion) against total liabilities of Dh15.7 billion. It made a loss of Dh290.6 million.
It has not yet reported its 2010 results. Customers deposits stood at Dh14.9 billion at the end of 2009.
"DB's standalone ratings could be upgraded if we were to see a swift and strong restoration of its financial condition, though the probability of an immediate upgrade seems moderate," Howladar said.
Dubai Bank's long term rating is currently B1.