According to the statement, Moody's confirmed that the installation is due to factors including strong support from Abu Dhabi to the federal government, in addition to the strength of the credit elements of the UAE and Abu Dhabi, and the financial strength, for them. , She also stressed the extremely low government debt, the high level of wealth and the strength of state institutions.
The agency pointed out that the stable outlook for the UAE government reflects that the risks surrounding the classification are balanced and supported by the future outlook for the sovereign classification of Abu Dhabi, and the potential for great success of economic diversification efforts. p>
The agency said that the classification did not change for the Emirates in terms of long-term issues and the ceiling of deposits in foreign currencies at category Aa2 and Prime One, respectively. Likewise, the same classification did not change for long-term issues and the local currency ceiling of deposits.
The agency justified this stabilization and stable outlook with the strong support of Abu Dhabi, and its support for the federal government. This view is supported by the strong correlation between institutions and Abu Dhabi's continued financial contribution to the federal budget.
Moody's noted that Abu Dhabi's financial position is strong, and it expects to maintain it and continue to support the federal budget. Moody's expects Abu Dhabi to register a slight fiscal deficit, nearing a full balance in the current and next two years, and then turn to record financial surplus in 2021 and 2022, with global oil prices rising and against the backdrop of planned investments in oil exploration.
Moody's expects that government debt will be very low in the near future with significant financial strength for the UAE.
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