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Moody's upgrades Abu Dhabi's outlook to stable

Staff Writer |
Moody's has changed the rating outlook on the government of Abu Dhabi to stable from negative.

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At the same time, Moody's affirmed the long-term Aa2 issuer rating.

Moody's noted that the key drivers of the outlook change are effective policy response to the low oil price environment through an acceleration in the country's reform agenda; expected improvement in the fiscal and current account positions; and the economy's growth and diversification prospects.

The affirmation of the Aa2 rating incorporates Moody's view that the government of Abu Dhabi (Aa2 stable), the wealthiest of the seven emirates that compose the UAE, stands fully behind the federal government of the UAE.

Accordingly, the rating of the federal government is linked to the credit profile of the government of Abu Dhabi.

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