Latest news with #sovereigncreditrating
Arabian Business
11 hours ago
- Business
- Arabian Business
UAE earns top sovereign credit ratings from Moody's, S&P, and Fitch in 2025
The UAE has secured strong sovereign credit ratings from the world's top three agencies – S&P Global (S&P), Moody's Investors Service (Moody's), and Fitch Ratings (Fitch) – reinforcing international confidence in its economy and fiscal resilience. On June 17, S&P assigned the UAE a sovereign credit rating of 'AA' with a stable outlook. Moody's affirmed its 'Aa2' rating, also with a stable outlook, in its 2025 annual review. Fitch followed on June 24 with an 'AA-' rating, maintaining the stable outlook. These consistent evaluations from all three major global credit agencies reflect the UAE's strong fiscal position, economic diversification efforts, and disciplined financial governance. UAE credit ratings The country now joins a small group of nations worldwide with favourable sovereign credit ratings from all three agencies. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, said: 'The affirmation of the UAE's strong sovereign rating by the world's top three international credit rating agencies, and their consensus on a stable outlook, reflects the deep-rooted international confidence in the resilience of our national economy and the efficiency of our fiscal policies. 'This is the result of a comprehensive economic vision led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and closely followed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE and Ruler of Dubai.' Sheikh Mohammed said the UAE continues to implement economic policies grounded in diversification, transparency, and fiscal discipline, with a strong focus on increasing non-oil revenues and achieving financial sustainability. This reflects the integrated performance of government entities and long-term strategic planning, which continue to reinforce the UAE's position as a flexible and credible global economic hub. He added: 'At the Ministry of Finance, we remain committed to working closely with all government entities to enhance the efficiency of resource management, develop productive sectors, and improve the country's investment appeal. 'The development of the sovereign yield curve for the dirham was a major milestone in enhancing market transparency, providing investors with a reliable benchmark for pricing dirham-denominated debt instruments. 'This strengthens the UAE's presence on the global economic map and reinforces its ability to confidently navigate regional and international changes and challenges — by expanding the investor base and enhancing the country's reputation as a reliable and attractive destination in global capital markets.' The individual reports from each agency highlight key strengths: S&P: Cited the UAE's robust financial position and the strength of consolidated sovereign assets. It also noted that regional geopolitical tensions are likely to have limited impact due to the country's internal stability and sovereign wealth. Moody's: Emphasised continued progress in non-oil revenue development and the UAE's attractiveness to foreign investors and talent, underpinned by sound policy frameworks. Fitch: Recognised elevated regional risks but affirmed the UAE's capacity to absorb shocks, supported by strong fiscal and external reserves. The ratings confirm the United Arab Emirates' ability to diversify revenue streams beyond hydrocarbons, maintain fiscal discipline, and manage risks effectively. These achievements have contributed to macroeconomic stability and sustainable growth across key sectors such as finance, trade, infrastructure, and innovation.
Reuters
23-05-2025
- Business
- Reuters
Fitch keeps Ukraine at 'Restricted Default' rating as funding efforts continue
May 23 (Reuters) - Fitch affirmed Ukraine's long-term foreign currency sovereign credit rating at "Restricted Default" on Friday, as the war-torn nation continues to navigate diplomatic tensions and a significant erosion of its finances. Kyiv is undergoing extensive debt restructuring after more than three years of conflict with Russia, which has devastated the Ukrainian economy. In the first year of the war, Ukraine's gross domestic product fell by nearly 30%. It is still lower than its pre-war levels, but delivered modest growth in 2023 and 2024. Fitch said it will maintain the rating until Ukraine normalizes relations with a "significant majority" of external creditors, and noted high funding uncertainties in 2026 and unclear benefits from a U.S. minerals deal. While the International Monetary Fund began a new review of its $15.5 billion program to Ukraine this week, the country failed to reach a deal with GDP-linked debt holders last month. Moscow and Kyiv have also sought to show efforts towards peace after U.S. President Donald Trump prioritized ending the war. Although talks in Turkey did not yield a breakthrough, Russia and Ukraine on Friday freed 390 prisoners each in what is expected to be the biggest prisoner swap of the war so far.
