UAE – Mubasher: S&P Global Ratings has changed its outlook on Sharjah and Ras Al Khaimah from stable to negative due to the high economic, fiscal, and external risks caused by the coronavirus (COVID-19) pandemic and the plunge in oil prices, Reuters reported.
The rating agency has affirmed the long and short-term foreign and local currency sovereign credit ratings at 'BBB/A-2' for Sharjah and 'A/A-1' for Ras Al Khaimah.
The economies of Sharjah and Ras Al Khaimah are forecast to contract by 3% and 2%, respectively, in 2020.
The negative outlook reflects the view of heightened economic, fiscal, and external risks related to the COVID-19 pandemic.
S&P further noted that it believes "that the economic contraction in 2020 and the risks to recovery in 2021 could weigh" on the two emirates' "real per capita income growth, and put pressure on its fiscal position."
