S&P Global: UAE possesses a solid financial shield against shocks
S&P Global Ratings has affirmed its 'AA/A-1+' long- and short-term foreign and local currency sovereign credit ratings on the United Arab Emirates, maintaining a "Stable" outlook. The agency also held its Transfer and Convertibility (T&C) assessment at 'AA+'. It emphasised that the country possesses a solid financial shield protecting it against shocks, alongside a massive net asset position that…
S&P Global has affirmed the United Arab Emirates (UAE) with AA/A-1+ sovereign credit ratings for both long- and short-term foreign and local currencies, maintaining a Stable outlook. The agency highlighted the country's solid financial shield, attributed to strong fiscal buffers from its sovereign wealth fund and foreign exchange reserves, as well as a robust banking sector with stable credit quality and healthy capital buffers.
S&P Global noted that the UAE benefits from a stable monetary environment due to its pegged currency to the US dollar and that the country's large fiscal and external buffers provide sufficient policy headroom during adverse geopolitical developments or unfavorable hydrocarbon sector dynamics.
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