Dubai – Mubasher: Moody's Investors Service has assigned a provisional rating of Baa2 to the Government of Sharjah's Global Medium Term Note (GMTN) Programme.
The Baa2 rating on the emirate’s proposed GMTN programme mirrors the Government of Sharjah's long-term issuer rating (Baa2), with a stable outlook.
“The stable outlook on the issuer rating is supported by Sharjah's relatively diversified economy, low external vulnerability risks and a credible currency peg afforded by membership in the federation of the UAE, ample funding sources, and high-income levels contributing to shock absorption capacity.”
It is also indicating a degree of resiliency at the current rating level despite pressures on creditworthiness globally associated with the coronavirus shock, according to Moody’s.
The report further noted that the stable outlook takes into account the relatively low probability of a significant improvement in fiscal strength.