UAE’s Sharjah makes no decision on issuing debt after being rated

S&P earlier assigned the emirate a sovereign credit rating of A with a stable outlook

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The emirate of Sharjah has yet to make a decision issuing bonds or sukuk after obtaining a sovereign credit rating, an official in the emirate’s department of finance said on Wednesday.

“The basic position is today there is no decision about sukuk or bond issuance,” Tom Koczwara, director of the debt management office at Sharjah’s Finance Department, told Reuters by telephone.

“It is something we keep under review,” he added.

Moody’s Investors Services assigned an A3 government bond rating to Sharjah earlier. Standard and Poor’s Rating Services also assigned an ‘A/A-1’ long and short-term foreign and local currency sovereign credit rating with a stable outlook for the Emirate on Tuesday.

S&P’s rating is supported by Sharjah’s limited fiscal risks and low debt, as well as the available support from the United Arab Emirates, if needed.

“The stable outlook balances our view of Sharjah’s fiscal flexibility, and the advantages of UAE membership, against its still nascent political institutions and the limited availability of timely economic data,” S&P said in a statement.

(With Reuters)