The cost of insuring Qatar against default rose only 8.5 basis points in the week to Tuesday while Abu Dhabi rose 9.6 basis points. This is compared to Markit’s CEEMEA sovereign index, which covers a wider emerging markets universe and that rose 45.6 basis points, according to data displayed on Bloomberg. Dubai’s CDS rose 49.6 basis points.
Qatar, the world’s fastest growing economy, is rated AA by Standard & Poor’s, one notch below the US, while Abu Dhabi, holder of 7 per cent of the world’s proved oil reserves, is also rated AA. S&P downgraded the US one notch to AA+ last Friday, sending global equity markets tumbling.
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