Government of Abu Dhabi - Aa2 stable: Annual credit analysis - Moody's Global Credit Research

Government of Abu Dhabi - Aa2 stable: Annual credit analysis

Government of Abu Dhabi - Aa2 stable: Annual credit analysis - Moody's Global Credit Research
Government of Abu Dhabi - Aa2 stable: Annual credit analysis
Published May 25, 2021
33 pages (17477 words) — Published May 25, 2021
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Brief Excerpt:

...The credit profile of Abu Dhabi reflects the strength of the government's balance sheet. We estimate that total government debt is equivalent to 5% of the total value of the Abu Dhabi Investment Authority's (ADIA) gross assets under management. A very high per capita income, vast hydrocarbon reserves and superior infrastructure also support creditworthiness. In addition, domestic politics are stable and the United Arab Emirates (UAE, Aa2 stable) has good relations with the international community. Abu Dhabi's main credit challenges lie in a lack of institutional data transparency, particularly the absence of public figures on prospective budgets and on the composition of offshore assets managed by ADIA. Regional geopolitical tensions present event risks, and the emirate's dependence on hydrocarbons is also a significant vulnerability. That said, the investment returns from ADIA provide an additional source of stable revenue for Abu Dhabi. The stable outlook reflects our expectation that...

  
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Issuer In-Depth

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Abu Dhabi, Government of
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Government of Abu Dhabi Aa2 stable: Regular update - Credit Opinion – 2022/10/20 – US$ 250.00 – ...Abu Dhabi's credit profile is supported by the government's strong balance sheet and net creditor position, with sovereign wealth assets far exceeding total liabilities in the wider public sector, as well as its very high income levels and vast hydrocarbon endowment. These strengths are balanced against the significant exposure of the economy and government finances to carbon transition, and regional geopolitical tensions....

Government of Abu Dhabi Aa2 stable: Regular update - Credit Opinion – 2022/05/11 – US$ 250.00 – ...Abu Dhabi's credit profile is supported by the government's strong balance sheet and net creditor position, with sovereign wealth assets far exceeding total liabilities in the wider public sector, as well as its very high income levels and vast hydrocarbon endowment. These strengths are balanced against the significant exposure of the economy and government finances to carbon transition, and regional geopolitical tensions....

Government of Abu Dhabi - Aa2 stable: Annual credit analysis - Issuer In-Depth – 2022/04/07 – US$ 750.00 – ...The credit profile of Abu Dhabi reflects the strength of the government's balance sheet and net creditor position. We estimate that liquid assets managed by the Abu Dhabi Investment Authority (ADIA), the emirate's sovereign wealth fund (SWF), are large enough to cover more than 15 times the government's direct debt and far exceed the total liabilities in the wider public sector. Abu Dhabi's very high per capita income, vast hydrocarbon reserves and track record of institutional credibility and effectiveness also support its economic resiliency. We expect the emirate's net creditor position to grow over the next few years as high oil prices and rising production result in large fiscal surpluses, some of which will be saved in ADIA. These strengths are balanced against the very significant reliance of the economy and government finances on hydrocarbons, as well as regional geopolitical tensions. Risks stemming from the reliance on hydrocarbons will manifest over the longer term, as carbon...

Government of United Arab Emirates: New corporate income tax is credit positive for the sovereign - Issuer Comment – 2022/02/03 – US$ 200.00 – ...On 31 January, the United Arab Emirates (Aa2 stable) Ministry of Finance announced a new federal corporate income tax (CIT) effective 1 June 2023. The new tax will broaden the federal government's revenue base, increasing its scope for spending and enhancing its already-strong fiscal metrics and debt-issuing capacity, which is currently capped at around 250% of own stable revenue. And, depending on the extent of revenue sharing with individual emirates, it will be credit positive for them too. Assuming that revenue sharing with the individual emirates is in line with the current approach for value added tax (VAT) receipts, the new tax will diversify Abu Dhabi's (Aa2 stable) government revenue away from hydrocarbons, although modestly. For the other emirates including Sharjah (Baa3 negative) and Dubai, the tax's revenue stream will augment license fees, service fees and volatile land sales. However, free zones in the UAE's non-oil economy will be exempt from the tax, which will limit the...

Government of Abu Dhabi Aa2 stable: Regular update - Credit Opinion – 2021/10/20 – US$ 250.00 – ...Abu Dhabi's credit profile is supported by the government's strong balance sheet and net creditor position, with sovereign wealth assets far exceeding total liabilities in the wider public sector, as well as its very high income levels and vast hydrocarbon endowment. These strengths are balanced against the very significant reliance of the economy and government finances on hydrocarbons and regional geopolitical tensions....

Government of Abu Dhabi Aa2 stable: Update following rating affirmation, outlook unchanged - Credit Opinion – 2021/05/05 – US$ 250.00 – ...Abu Dhabi's credit profile is supported the government's strong balance sheet, with estimated assets under management at the Abu Dhabi Investment Authority far exceeding total liabilities in the wider public sector. The rating is constrained by the government's high reliance on hydrocarbons revenues, limited transparency over the size and composition of financial assets, and the absence of timely, public fiscal data....

Moody's affirms Abu Dhabi's Aa2 ratings; maintains stable outlook - Rating Action – 2021/05/04 – US$ 180.00 – use of or inability to use any such information. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR...

Government of Abu Dhabi Aa2 stable: Update following assignment of ESG credit impact scores - Credit Opinion – 2021/02/15 – US$ 250.00 – ...Abu Dhabi's (Aa2 stable) credit profile is supported the government's strong balance sheet, with estimated assets under management at the Abu Dhabi Investment Authority far exceeding total liabilities in the wider public sector. The rating is constrained by the government's high reliance on hydrocarbons revenues, limited transparency over the size and composition of financial assets, and the absence of timely, public fiscal data....

Government of Abu Dhabi Aa2 stable: Regular update - Credit Opinion – 2020/09/29 – US$ 250.00 – ...Abu Dhabi's credit profile is supported the government's strong balance sheet, with estimated assets under management at the Abu Dhabi Investment Authority far exceeding total liabilities in the wider public sector. The rating is constrained by the government's high reliance on hydrocarbons revenues, limited transparency over the size and composition of financial assets, and the absence of timely, public fiscal data....

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Moody's Global Credit Research—Moody's Investors Service, a leading global credit rating, research and risk analysis firm, publishes credit opinions, research, and ratings on fixed-income securities, issuers of securities and other credit obligations. Credit ratings and research help investors analyze the credit risks associated with fixed-income securities. Ratings also create efficiencies in fixed-income markets and similar obligations, such as insurance and derivatives, by providing reliable, credible, and independent assessments of credit risk. For issuers, Moody's services increase market liquidity and may reduce transaction costs.

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MLA:
Moody's Global Credit Research. "Government of Abu Dhabi - Aa2 stable: Annual credit analysis" May 25, 2021. Alacra Store. Mar 29, 2024. <http://www.alacrastore.com/moodys-credit-research/Government-of-Abu-Dhabi-Aa2-stable-Annual-credit-analysis-PBC_1270334>
  
APA:
Moody's Global Credit Research. (). Government of Abu Dhabi - Aa2 stable: Annual credit analysis May 25, 2021. New York, NY: Alacra Store. Retrieved Mar 29, 2024 from <http://www.alacrastore.com/moodys-credit-research/Government-of-Abu-Dhabi-Aa2-stable-Annual-credit-analysis-PBC_1270334>
  
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