United Arab Emirates’ Sovereign Ratings Affirmed with a Stable Outlook Rating Action
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Summary
Ref : AE21CRA00-01 15 January 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 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…