Moody’s Sends Dubai’s Neighbor Sharjah Down Into Junk Status

Moody’s Sends Dubai’s Neighbor Sharjah Down Into Junk Status

A view of Al Noor Mosque during the Sharjah Light Festival on February 9, 2017 in Sharjah, United ... [+] Arab Emirates (Photo by Francois Nel/Getty Images) The emirate of Sharjah – one of the seven parts of the United Arab Emirates – has seen its credit rating cut by Moody's Investors Service to Ba1. Although that only represents a one-notch fall from its previous level, it pushes Sharjah into non-investment grade, more commonly known as junk status. Announcing the cut, Moody's said the downgrade was based on its expectation that the emirate's fiscal position would come under further strain in the next few years. It said the authorities had yet to provide "a credible fiscal adjustment plan" to address rising debt levels and weaker debt affordability metrics. Sharjah serves as a dormitory town for its better-known neighbor Dubai but has also developed a reputation for supporting culture and the arts – since the late 1990s it has awarded the UNESCO-Sharjah Prize for Arab Culture, in conjunction with the UN's culture agency, and the emirate is also home to numerous museums. It is also known locally as the UAE's most conservative emirate, with stricter social rules and alcohol banned across