DUBAI 22 July 2018: S&P Global Ratings has affirmed its rating on the Emirate of Sharjah at ‘BBB+/A-2’ Ratings Outlook Stable
Overview
• We project that Sharjah’s manufacturing, construction, and tourism sectors will support GDP growth of about 2% over 2018-2021.
• We project that fiscal deficits will narrow.
• We are affirming our ‘BBB+/A-2’ ratings on Sharjah.
• The outlook is stable.
Ras Al Khaimah Outlook Revised To Negative
S&P Global Ratings has affirmed its rating on Ras Al Khaimah with a negative outlook on risks to fiscal position; Ratings Affirmed At ‘A/A-1’.
Overview
• Based on revised fiscal data–-disaggregating the activities of state-owned enterprises from the government fiscal accounts–-we expect Ras Al Khaimah will post smaller fiscal surpluses and higher government debt servicing than previously assumed.
• We are therefore revising our outlook on the long- and short-term ratings to negative from stable and affirming our ratings at ‘A/A-1’.
• The negative outlook reflects the risk that the government’s fiscal position may weaken beyond our current projections. If a downgrade occurred, we could lower the rating by more than one notch.