United Arab Emirates – Sovereign Ratings Affirmed with a Stable Outlook
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Summary
United Arab Emirates – Sovereign Ratings Affirmed with a Stable Outlook
R ating Action
Capital Intelligence Ratings (CI Ratings or CI ) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) of the United Arab Emirates (UAE) at ‘AA-’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term FCR (ST FCR) and ST LCR at ‘A1+’. The Outlook for the ratings remains Stable.
Rating Rationale
The ratings reflect the strength of the UAE’s consolidated fiscal and external positions, and CI’ s expectation that these will remain strong throughout the forecast period. The ratings also reflect our view that the oil rich emirate of Abu Dhabi would be willing to support federal institutions in the unlikely event of financial distress. The stable domestic political environment, the country’s high GDP per capita, and the government’s ongoing efforts to…