Moody’s has reaffirmed Abu Dhabi’s Aa2 long-term local and foreign currency issuer ratings, along with the foreign currency senior unsecured debt rating at Aa2 and short-term local and foreign currency issuer ratings at P-1.
The ratings are supported by Abu Dhabi’s strong balance sheet, which is expected to remain so in the future, providing significant policy buffers and shock absorption capacity.
While Abu Dhabi’s reliance on hydrocarbons makes it vulnerable to oil price cycles and the global carbon transition, its large hydrocarbon endowment and low production costs, combined with its strong balance sheet and effective institutions, will help mitigate these challenges.
The stable outlook is based on the expectation of supportive oil prices and continued improvement in Abu Dhabi’s net creditor position, despite ongoing oil production cuts impacting real GDP growth.
