S&P lowers outlooks for #UAE's Sharjah, Ras Al Khaimah to negative - Reuters

S&P lowers outlooks for UAE's Sharjah, Ras Al Khaimah to negative - Reuters:

S&P Global Ratings has lowered its outlook to negative from stable for Sharjah and Ras Al Khaimah, two of the seven emirates that form the UAE, citing the financial risks of lower oil prices and the coronavirus.

The rating agency affirmed its BBB/A-2 long-term rating for Sharjah and its A/A-1 long-term rating for Ras Al Khaimah.

A negative outlook means an expectation that a credit issuer’s finances may worsen and the agency may downgrade its rating as its next move.

S&P said it expects Sharjah’s economy to contract by 3% this year due to lower oil prices and the coronavirus outbreak, while Ras Al Khaimah’s economy would contract by 2%.