S&P downgrades #Sharjah to 'BBB', with stable outlook | ZAWYA MENA Edition

S&P downgrades Sharjah to 'BBB', with stable outlook | ZAWYA MENA Edition:

S&P Global Ratings lowered Sharjah’s rating, citing increasing debt and interest burdens.

The ratings agency lowered the emirate’s long-term foreign and local currency sovereign credit ratings to “BBB” from “BBB+” and kept the outlook stable.

Weak economic conditions in Sharjah since 2019 have led to lower revenues from government-related entities and land sales. These, combined with increased government grants and land compensation payments, as well as accelerated payments to contractors, have resulted in a wider-than-anticipated deficit, the ratings agency noted.

“Accelerated contractor payments related to infrastructure projects in the Emirate, as well as increased land compensation payments and grants to universities have resulted in higher-than-expected expenditure,” it said.