United Arab Emirates’ Sovereign Ratings Affirmed with a Stable Outlook
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Summary
Ref : AE21CRA00-0 29 J ul y 2021
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 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 , the gradual recovery from the economic fallout of Covid – 19 , and high GDP per capita. In addition, they reflect CI Ratings’ expectation that the oil rich emirate…