Moody's Credit Rating Agency has assigned the United Arab Emirates a rating of "Aa2" with a stable outlook, which is the strongest sovereign rating in the region.
This new classification reflects the strength and flexibility of the UAE's economy and its ability to overcome various challenges, especially in light of the exceptional circumstances that the world is witnessing from the repercussions of the spread of the Covid-19 pandemic. According to the agency, the credit strengths of the UAE are related to the high per capita gross domestic product, as well as the country's enjoyment of internal stability and strong and broad international relations.
It also indicated that the UAE had demonstrated effective and strong institutional practices by leading reforms and diversifying its revenue base.
As for the outlook for the economy, the agency revealed that it was supported by stable expectations for the sovereign rating as well as the potential for an upward trend in the medium term in line with the ongoing diversification efforts, in addition to its commitment to the emergency commitments associated with the government.
It should be noted that the international credit agency "Fitch" had recently set the UAE sovereign rating at (AA-), with a stable outlook. This rating comes within 18 indicators that reflect the creditworthiness of federal government institutions and their ability to formulate the necessary policies to continue sustainable growth.
Source (Al-Arabiya.net, Edited)
