Fitch Ratings reports positively on Abu Dhabi govt's foreign assets

23/09/2011 - Kenya property & investment news Posted by Bob Brunskill
Fitch Ratings reports positively on Abu Dhabi govt's foreign assets

Fitch Ratings has confirmed that Abu Dhabi government's foreign assets are estimated at approaching $300 billion (Dh1.1 trillion), emirates247.com has reported.Furthermore, the ratings agency also said that government has just $4 billion of direct sovereign external debt.The emirate's Sovereign net foreign assets are, therefore, second only to Kuwait.Richard Fox, head of Middle East and Africa Sovereigns at Fitch, observed: "The 2008-2009 global financial crisis was a severe stress test for Abu Dhabi, but one which left its balance sheet largely undented."Any future stress would have to have harsher consequences than this to trigger negative rating action."Abu Dhabi, of course, boasts one of the strongest balance sheets of any rated country. And according to the agency, the emirate's fiscal balance was close to balance last year.Despite its huge oil reserves, Abu Dhabi is seeking to diversify its economy, thereby ensuring that it remains prosperous and attractive to investors in the years ahead.