Mubasher: Standard and Poor's (S&P) Global Ratings has affirmed Abu Dhabi “AA/A-1+” credit ratings, with a stable outlook.

Abu Dhabi government’s substantial net asset position will shield it against almost all possible external shocks, thus the affirmation reflects Abu Dhabi’s strong fiscal and external positions, the ratings agency said in a statement on Saturday.

“The stable outlook on Abu Dhabi reflects our expectation that economic growth will steadily recover and that the country’s fiscal position will remain strong over the next two years, although structural and institutional weaknesses will likely persist,” the report added.

“We could consider raising our ratings on Abu Dhabi if we observed pronounced improvements in data transparency, including on fiscal assets and external data, alongside further progress in institutional reforms.

“Furthermore, measures to improve the effectiveness of monetary policy in Abu Dhabi, such as developing domestic capital markets, could also be positive for the ratings over time,” the report further explained.