Standard & Poor’s Ratings Services affirmed its AA/A-1+ long- and short-term foreign and local currency sovereign credit ratings on Abu Dhabi with a stable outlook. “In our view, Abu Dhabi’s large external and fiscal net asset positions give it a considerable buffer to support its economy and mitigate the risks from external vulnerabilities,” S&P said in a report.
“The ratings on Abu Dhabi are supported by its strong fiscal and external positions, which afford it fiscal policy flexibility. The exceptional strength of its net asset positions also provides a buffer to counter the negative impact of oil price volatility on economic growth and government revenues, as well as on the external account. Abu Dhabi is one of the world’s wealthiest economies; we estimate GDP per capita at $106,000 in 2013. The underpinnings of economic growth have strengthened since 2010, supported by the expansion in oil production, high public spending, and broadening of the economy’s production base including services and manufacturing.”
After reaching a high of 9.3 per cent in 2011, real economic growth moderated to 5.6 per cent in 2012, it said.
