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S&P affirms sovereign ratings on Abu Dhabi
Standard & Poor's Ratings Services on Monday said it had affirmed its 'AA' long-term and 'A-1+' short-term sovereign credit ratings on the emirate of Abu Dhabi.
- Staff Report
- Published: 00:05 July 29, 2008
Dubai: Standard & Poor's Ratings Services on Monday said it had affirmed its 'AA' long-term and 'A-1+' short-term sovereign credit ratings on the emirate of Abu Dhabi.
"The ratings on Abu Dhabi are supported by the government's very strong asset position, which provides significant financial flexibility, the country's high level of political stability and wealth, underpinned by its rich resource endowment, and by policies that reinforce Abu Dhabi's integration with the global economy," Standard & Poor's credit analyst Luc Marchand said.
"The ratings are constrained by the geopolitical risks that face all sovereigns in the region, the limited disclosure on the government's assets, and growing contingent liabilities arising from the banking system and the public sector of the UAE as a whole."
The stable outlook on Abu Dhabi balances the emirate's strong financial position and prudent policies against geopolitical risks, rising contingent liabilities, and potential impediments to growth stemming from undeveloped institutions.
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