United Arab Emirates’ Sovereign Ratings Affirmed with a Stable Outlook

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Summary

Ref: ae20cra00-02 10 July 2020

Ref : AE 20 CRA00- 02 10 July 2020

United Arab Emirates’ Sovereign Ratings Affirmed with a Stable Outlook 

Rating Action

Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) of the United Arab Emirates (UAE) at ‘AA-’. The sovereign’s Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) have also been affirmed at ‘A1+’. The Outlook for the ratings remains Stable.

Rating Rationale

The ratings reflect the continued strength of the country’s external position which is characterised by the availability of substantial financial assets. The ratings are also supported by the stable domestic political situation and high GDP per capita. In addition, they reflect CI Ratings’ expectation that the oil rich emirate of Abu Dhabi would be willing to support federal…