Standard & Poor's Ratings Services said today that it assigned its 'AA' long-term senior unsecured debt rating to the Emirate of Abu Dhabi's (AA/Stable/A-1+) upcoming $10 billion global medium-term note program. The same rating will apply to all issues under the program, including the upcoming first issue, the size and maturity of which is yet to be determined.
"The ratings on the Emirate of Abu Dhabi are supported by the government's very strong asset position, which provides significant financial flexibility, the country's high level of political stability and wealth, underpinned by its rich resource endowment, and by policies that reinforce Abu Dhabi's integration with the global economy," Standard & Poor's credit analyst Farouk Soussa said. "The government of Abu Dhabi has accumulated substantial foreign and domestic assets, which are the product of a high resource endowment and prudent fiscal policies over past decades."
"The stable outlook on Abu Dhabi balances the Emirate's strong financial position and prudent policies against geopolitical risks, rising contingent liabilities, and potential impediments to growth stemming from undeveloped institutions," Mr. Soussa said. "Significantly reduced regional geopolitical risk would be important in raising the rating in the future. Conversely, a sustained worsening of political and event risks, or a significant and sustained erosion of the government's asset position, would put the government's creditworthiness under pressure."