United Arab Emirates – Sovereign Ratings Affirmed with a Stable Outlook Rating Action
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Summary
Ref : AE2 4 CRA00-0 2 12 J ul y 202 4
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 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 UAE’s stable domestic political environment, high GDP per capita, sound banking…