Highest rating among countries in the region
ABU DHABI/December 09-2020: Despite the absence of any favourable triggers like high oil price, and the presence of COVID 19 that crippled the economies the world over, the UAE government has received Aa2 credit rating with a stable outlook, from Moody’s, a leading international rating agency.
This is the highest sovereign rating received by any country in the region. UAE has recently been assigned AA- sovereign rating by another international rating agency, Fitch Ratings, with stable outlook.
According to a statement from the Finance Ministry, the latest rating from Moody’s is another endorsement to the success of the country’s financial and economic vision and policies, and the strength and stability of its economic, financial and credit sectors.
Sheikh Hamdan bin Rashid Al Maktoum (seen in the picture), Deputy Ruler of Dubai and Minister of Finance, confirmed that this new classification reflects the strength and resilience of the country’s economy and its ability to overcome various challenges – especially in light of the exceptional circumstances that the world is facing due to the COVID-19 pandemic.
Sheikh Hamdan noted that this rating has proved beyond any doubt the solid foundations of the nation’s public finances.
He also affirmed the success and effectiveness of the proactive policies and measures taken by the Federal Government to deal with the negative effects of the pandemic, to continue achieving economic targets and pushing forward comprehensive and sustainable development, making the UAE a model to be followed globally.
Excellent credit profile
In its report on the sovereign credit profile of the UAE, Moody’s has indicated that the UAE’s credit rating is supported by the country’s credit strength and the high per capita GDP, and also the country’s internal stability and healthy international relations.
The agency also acknowledged that the UAE has demonstrated strong institutional effectiveness by spearheading reforms and effectively diversifying its revenue base.