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Fitch affirms Ras Al Khaimah's rating at 'A', outlook stable

Fitch affirms Ras Al Khaimah's rating at 'A', outlook stable
The economy will recover by 5.5% in 2021

UAE - Mubasher: Fitch Ratings has maintained Ras Al Khaimah's Long-Term Foreign-Currency Issuer Default Rating at 'A' with a stable outlook, according to a recent research note.

The rating reflects that the coronavirus (COVID-19) impact on the emirate's fiscal position will not last, alongside its low government debt burden and high GDP per capita.

The rating agency expected that Ras Al Khaimah's economic activity would contract by 6.4% in 2020 due to the global recession, which has put pressure on the export-driven manufacturing as well as the mining and quarrying sectors.

On the other hand, the economy is forecast to recover with a 5.5% growth rate in 2021, but the GDP will remain below the end of 2019 level.

At the same time, the emirate's consolidated budget is set to witness a small deficit in 2020 for the first time since 2012.