Moody's affirms UAE credit rating, making it regional leader: Sheikh Mohammed

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The United Arab Emirates has retained its third-highest possible credit rating from international rating company Moody’s, according to UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum.

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The nation’s creditworthiness rating remains at Aa2, making it the highest-rated Gulf country following the announcement in September that Kuwait would be downgraded from Aa2 to A1.

Sheikh Mohammed tweeted on Wednesday that the UAE’s “credit power [stems] from internal stability, rational financial policies, strong international relations, and solid economic diversity, an achievement that we will add to 2020 before its end.”

On June 19, Moody’s changed its outlook on eight UAE banks from stable to negative amid the coronavirus pandemic: Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, HSBC Bank Middle East, Abu Dhabi Islamic Bank, The National Bank of Ras al-Khaimah, and National Bank of Fujairah.

The banks’ ratings were affirmed, but the outlooks were downgraded due to “the potential material weakening in their standalone credit profiles, amid a challenging operating environment in the UAE due to the coronavirus outbreak, low oil prices and pre-existing economic challenges,” a Moody’s spokesperson said at the time.

With Reuters.

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