UAE gets first rating from Fitch ahead of federal bond sale

UAE gets first rating from Fitch ahead of federal bond sale

The United Arab Emirates was assigned the fourth-highest investment grade at Fitch Ratings as the Gulf nation prepares to issue a federal bond for the first time.

The company ranked the sovereign AA- with a stable outlook. It cited moderate consolidated public debt levels, a solid external asset position, and the likelihood of support from the nation's capital Abu Dhabi if needed. Moody's Investors Service rates the UAE at Aa2, its third-highest investment grade.

"The UAE's fiscal and external balance sheets benefit from Abu Dhabi's large sovereign net foreign assets,“ the agency said on Wednesday. "However, although Abu Dhabi is committed to the financial stability and health of the UAE, it demonstrated in 2009-10 that support is selective.“

Abu Dhabi is rated one level above the UAE at Fitch, which now sees