Search AbuDhabiPR.com

Home >> Banking & Investments

Abu Dhabi Tops Agencies' GCC Sovereign Ratings

Thursday, May 25, 2023/ Editor -  

Share

Home >> Banking & Investments
Arabian Gulf Business Insight reveals the top-rated sovereign wealth funds 
• Fitch, S&P, Moody’s rate Abu Dhabi top in the GCC
• Saudi Arabia’s diversification helps score, but may be overinvested
• Bahrain and Oman are rated comparatively poor
 
Dubai, United Arab Emirates – 25 May, 2023: Arabian Gulf Business Insight (AGBI), a next-generation business news platform, today published findings by the three leading global rating agencies on the sovereign wealth funds (SWF) of the GCC.
 
UAE capital Abu Dhabi is the highest-rated sovereign in the GCC, while Bahrain and Oman are the only sub-investment grade credit ratings, according to the three major US agencies – Fitch, Moody’s and S&P Global.
 
All three ratings agencies use similar systems, although there are differences in the way their ratings are conveyed. In the Gulf, S&P is consistently more bearish and does not rate the United Arab Emirates at all.
 
S&P rates Qatar, Saudi Arabia and Oman below its two peers, although it has positive outlooks for Bahrain and Oman. Fitch, meanwhile, is a notch more positive on Kuwait.
 
A sovereign credit rating is an assessment of a country’s creditworthiness. It is applied to all bonds issued by a government. The ratings are important guides to institutional investors around the world who use them as benchmarks. Many pension funds, for example, are limited by their statutes to investing only in investment grade credits. A re-rating can move markets.
 
The outlooks attached to the ratings are also important because they indicate a likely re-rating.
 
Key highlights from the special report:
 
AGBI reveals that Abu Dhabi ranks as the highest-rated sovereign across the three ratings agencies. Moody’s says its Aa2 rating is underpinned by Abu Dhabi's strong balance sheet and its net creditor position. Similarly, Fitch’s AA rating reflects Abu Dhabi's high GDP per capita and strong fiscal and external metrics.
 
Earlier this month, Moody’s upgraded Saudi Arabia’s outlook to positive on the back of broad-based structural reforms and investments in a range of diversification projects. However, Fitch noted rising public sector spending outside the budget, including on ambitious giga-projects, and warned of the potential for higher debt of state-owned and government-related entities.

Previous in Banking & Investments

Next in Banking & Investments


Home >> Banking & Investments Section

Latest Press Release

ADMAF Presents the World Premiere of "Hamour Doesn't Leave the Cubicle" ...

Abu Dhabi Co-Operative Society Holds Annual General Meeting for Fiscal Year 2023 ...

MBZUAI's world-renowned talent introduce research and demonstrate robotics solut ...

The new home of sound in abu dhabi: bang & olufsen store opens in the galleria ...

Abu Dhabi's new educational policies enhance learning experiences on par with gl ...

National Academy for Childhood Development Signs MoU with Family Care Authority ...

Scoopi Café Expands With New Flavors And A Second Location In Abu Dhabi

Miral and Abu Dhabi Sports Council to Host 'Pink Run' on Yas Island for Breast C ...

WFP Alarmed at Spreading Regional Displacement Crises in Middle East

IROS 2024 in Abu Dhabi to Feature 13 Forums Highlighting Impact of Advanced Robo ...

Abu Dhabi Department of Energy highlighting regulatory frameworks for petroleum ...

Nature Sauvage

UAE Secures Silver Medal at the First Global Challenge 2024: A Historic Achievem ...

Wizz air abu dhabi launches incredible promotion with ten percent off on selecte ...

La French Tech Abu Dhabi Dubai Kicks Off a Groundbreaking 2024-2025 Season

KEZAD Group Launches Media Production Company, KZ Media

Hoops and Horizons: Experience Abu Dhabi Teams Up with Boston Celtics to Transfo ...

HE Dr Thani Al Zeyoudi underscores the transformative power of AI in TradeTech k ...

TCL Electronics wins prestigious Middle East International Business Award 2024 f ...

Ajmal Perfumes Unveils New Luxury Fragrances in the UAE