Moody's credit rating agency has assigned the UAE an AA2 rating, while maintaining a stable outlook.
According to the agency, fixing the UAE's credit rating is supported by a relatively limited impact of the pandemic on the fiscal strength of the federal government, and the UAE's credit rating is due to the unconditional support from Abu Dhabi to the federal government.
According to the agency, the stable outlook for the UAE reflects a general balance of risks, which coincides with the stable outlook for the Abu Dhabi sovereign rating. Noting that the UAE's revenue shock resulting from the pandemic was largely compensated for through spending cuts, which highlights the ability to adjust.
Moody's report showed that some geopolitical tensions have subsided, but that they remain a pressure factor on the UAE's credit rating.
In parallel, the conditions of the non-oil sector in the UAE continued to improve in April, as its growth reached its highest level in 20 months, as the UAE economy recovers from the Covid-19 pandemic.
Source (Al-Arabiya.net, Edited)
