UAE - Mubasher: Moody's Investors Service (Moody's) has affirmed the Aa2 long-term issuer rating of the UAE government, with a stable outlook.
The affirmed rating reflects the low impact of the coronavirus (COVID-19) pandemic on the federal government's fiscal strength due to the government policy response, according to a recent press release.
The UAE's rating is also attributed to Moody's assumption of unconditional support from Abu Dhabi for the federal government.
Meanwhile, the stable outlook proves the balanced risks, consistent with the stable outlook on the Abu Dhabi sovereign rating and the vaccination progress which would back the economic recovery and limit the pandemic's impact on the UAE's credit metrics.
However, the recovery pace will vary among key sectors, with trade and tourism likely to recover before air passenger transportation.
It is noteworthy to mention that the UAE has extended key components of the Targeted Economic Support Scheme (TESS) until mid-2022, enabling financial institutions to have access to the collateralised AED 50 billion zero-cost liquidity facility up to 30 June 2022.