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Moody’s Bullish on gulf ratings
Posted on 09/29/08
Dubai: Gulf Arab states are among the best positioned in the world to withstand the effects of the credit crisis and there is no pressure on their sovereign credit ratings, Moody's senior analyst for the region said on Sunday.
"Currently, there is no downward pressure on any sovereign ratings in the Gulf," Tristan Cooper said. "These economies are still performing strongly, with wide twin surpluses and large cushions of foreign financial assets."
"Out of any in the world, these countries have to be considered among the best placed to deal with the global financial turmoil, at least from a macro perspective.
Surpluses
Gulf governments have posted huge current account surpluses in recent years on the back of a five-fold increase in the price of oil since 2002. Much has been invested in infrastructure and development, with some warehoused in large sovereign wealth funds like the Abu Dhabi Investment Authority (ADIA).