Abu Dhabi – Mubasher: Moody's Investors Service on Tuesday affirmed its rating of Abu Dhabi’s long-term issuer and senior unsecured ratings at “Aa2”, with a stable outlook.

The US-based rating agency has also affirmed the oil-rich emirate’s short-term issuer rating at “P-1”, and the long-term and short-term MTN programme ratings at (P) “Aa2” and (P) “P-1”, respectively, according to an official statement.

The rating is propped up by Moody's forecasts that the sovereign's fiscal strength will remain very high, with very low government debt and outsize sovereign assets, the statement added. 

Moody's also ascribed its decision to prospects for a medium-term increase in Abu Dhabi’s economic activity and revenue from the hydrocarbon sectors and reforms aimed at developing the non-oil sector also support the ratings.

“The stable outlook indicates that the risks are broadly balanced, supported by current oil prices and upside potential from continuing diversification efforts, and constrained by lingering government-related entity contingent liabilities and geopolitical tensions,” the statement highlighted.

The agency expects Abu Dhabi’s fiscal strength to remain very high, with very low government debt and vast financial assets.