Moody’s assigns Abu Dhabi negative view

Moody's Investors Service said it confirmed Abu Dhabi's long-term issuer ratings at Aa2 and assigned a negative outlook.

Concurrently the short term issuer rating was affirmed at P-1.

This action concludes the rating review for downgrade initiated on March 4.

Moody's decision to assign a negative outlook reflects the lack of clarity around the formulation and implementation of government policies to arrest and reverse the large deficits and the deterioration in the net asset position created by lower oil prices, in the absence of which Abu Dhabi's fiscal buffers will erode over time, exerting downward pressure on the rating.

As part of the action, the agency also confirmed the long-term senior unsecured rating at Aa2/provisional Aa2 and affirmed the short-term senior unsecured rating at provisional P-1.

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