Moody's Investors Service has changed to stable from negative the outlook on the ratings of Mubadala Development Company, International Petroleum Investment Company (IPIC) and Emirates Telecommunications (Etisalat).

At the same time, Moody's has affirmed the Aa2 long-term issuer rating of Mubadala, the Aa2 long-term issuer rating of IPIC and the Aa3 long-term issuer rating of Etisalat.

Today's actions follow the recent change in rating outlook to stable from negative on both the Government of United Arab Emirates (UAE) and the Government of Abu Dhabi, as well as the affirmation of their Aa2 long-term issuer ratings, it said.

Moody's earlier changed the rating outlook on Government of United Arab Emirates to stable from negative. At the same time, Moody's affirmed the long-term Aa2 issuer rating.

The key drivers of the outlook change are (1) effective policy response to the low oil price environment via an acceleration in the country's reform agenda; (2) expected improvement in the fiscal and current account positions; and (3) the economy's growth and diversification prospects.

The affirmation of the Aa2 rating incorporates Moody's view that the government of Abu Dhabi (Aa2 stable), the wealthiest of the seven emirates that compose the UAE, stands fully behind the federal government of the UAE. Accordingly, the rating of the federal government is linked to the credit profile of the government of Abu Dhabi.

The rating outlook on the Government of Abu Dhabi was also changed to stable from negative. Concurrently the long and short-term issuer ratings have been affirmed at Aa2/P-1.

The key drivers of the outlook change to stable are (1) an effective and broad policy response to the lower oil price environment via an acceleration in the reform agenda; (2) the economy's growth prospects, supported by a healthy banking system and (3) an easing of contingent liability risk.- TradeArabia News Service