Forbes Middle East ranked the Top 5 Arab Countries Based on Sovereign Credit Rating with a stable /positive Outlook using data from the three major rating agencies—Standard & Poor’s (S&P), Moody’s and Fitch.
Kuwait and the U.A.E. have the highest credit rating among Arab countries, with a long-term Aa2 rating from Moody’s, followed by Saudi Arabia with a long-term rating of A+ from Fitch, A1 from Moody’s and A- from S&P.Moody’s changed the rating outlook for the governments of the U.A.E. and Kuwait from negative to stable in May 2017 due to the fiscal and economic reform programs in both countries.
Moody’s noted that the key factors in the U.A.E.’s outlook change were the “effective policy response to the low oil price environment via an acceleration in the country’s reform agenda, expected improvement in the fiscal and current account positions; and the economy’s growth as per Moody’s.”
Countries in the GCC have been carrying out plans for economic reform since 2014 to diversify national income after the drop-in oil prices.In its regional economic outlook for 2018, the International Monetary Fund (IMF) projects Kuwait’s economic growth to reach 4.1%, the highest among GCC countries. It expects U.A.E. economic growth to hit 3.4 % this year.
U.A.E and Kuwait have the biggest sovereign wealth funds in the region with Abu Dhabi Investment Authority holding assets worth $828 billion and Kuwait Investment Authority managing $524 billion in assets as of June 2017, according to SWFI.
The IMF raised its economic growth forecast for K.S.A. from 1.1% to 1.6% as oil prices exceeded $60 per barrel, with further increases as of early January 2018 as oil prices rose to $70 per barrel in mid-January 2018, and ultimately settled at $69 million by the end of that month
Although Saudi Arabia’s rating was downgraded by Moody’s from Aa3 to A1 in May 2016, Fitch stated that the Kingdom is still in a high-grade rating supported by strong fiscal and external balance sheets with a strong commitment to an ambitious reform agenda.
We sorted countries according to the highest sovereign credit rating with a stable or positive outlook from the three major rating agencies—Standard & Poor’s, Moody’s and Fitch—and we excluded countries that have a negative outlook from the rating agencies.
Via : Forbes Middle East.
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