Standard & Poor's Ratings Services today affirmed its long- and short-term 'A/A-1' foreign and local currency sovereign credit ratings on the Emirate of Ras Al Khaimah (RAK). The outlook is stable. The transfer and convertibility assessment on RAK is 'AA+'.
The affirmation reflects RAK's membership of the United Arab Emirates (UAE), which in our view provides an anchor and potential support for political and economic stability. It also reflects sustained economic growth and government surpluses, which are strengthening RAK's slight net creditor position.
In our opinion, membership of the UAE benefits RAK's economic and political stability, and the UAE would provide external support in situations of political, economic, or financial stress. The federal government, funded mostly by Abu Dhabi, meets most of the current expenditure costs of the seven emirates that make up the UAE.
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