Search AbuDhabiPR.com

Home >> Business and Economy

Abu Dhabi Tops Agencies' GCC Sovereign Ratings

Tuesday, November 21, 2023/ Editor -  

Share

Home >> Business and Economy
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 Business and Economy

Next in Business and Economy


Home >> Business and Economy Section

Latest Press Release

Abu Dhabi and Japan sign MOU to enhance trade and innovation collaboration

Sayward Capital Corp. Signs Definitive Agreement with Technosteel Construction ( ...

UAE and Bahrain Announce Entry into Force of the Investment Promotion and Protec ...

Abu Dhabi University Hosts Seventh Women in Engineering Forum 2025

ADCMC team holds its first meeting of the year to highlight Abu Dhabi's emergenc ...

UAE Launches First National Food Loss and Waste Baseline Study

Abu Dhabi Early Childhood Authority Recognizes Graduates of Social Work Upskilli ...

DoubleTree by Hilton Sharjah Waterfront Hotel & Residences Partners with GEMS Ed ...

Revolutionary Stem Cell Therapy Shows Remarkable Results in Treating Chronic Low ...

ADNEC Group Announces EDGE as Sector Partner to Drive Advanced Manufacturing at ...

Ministry of Economy signs MoU with Egyptian Competition Authority enhancing coop ...

First cohort of UAE National EGA engineers complete EGA Technical Leadership pro ...

49th UAE Armed Forces Unification Day Statement

ADNOC Distribution Reports Highest First-Quarter Ebitda, With 11% Year-On-Year G ...

du reports its Q1 2025 results with 19.8% net profit increase

Statement from ENOC - Armed Forces Unification Day 2025

Building Apps with Text or Voice: Zoho Creator Empowers MENA Low-Code Developers ...

SHEGLAM launches the Buttery Bliss Blush Stick: The shortcut to glow-up skin

NBA Star Joakim Noah Brings Big-League Inspiration to Repton Abu Dhabi's rising ...

Alpha Dhabi advances growth momentum into Q1 2025 with revenue climbing to AED ...