Abu Dhabi – Mubasher: Moody's Investors Service has affirmed the long- and short-term issuer ratings of Abu Dhabi’s government at "Aa2/P-1", according to a statement.

The ratings agency changed the rating outlook on Abu Dhabi’s government to "Stable" from "Negative".  

The outlook was backed by the government’s effective policy response to lower oil prices via an acceleration in the reform agenda, in addition to the economy's growth prospects and an easing of contingent liability risk.

Moody's also affirmed the senior unsecured bond rating at "Aa2" and the long- and short-term MTN programme ratings at "(P)Aa2" and "(P)P-1", respectively.

Reductions in capital expenditures and transfers allowed the emirate's government spending to shrink by 23% over two years.

Moody's expects Abu Dhabi's fiscal deficit to come down to 2.0% of GDP in 2017 and 0.3% of GDP in 2018.