Stable 2019 outlook for GCC companies, says Moody's
Supportive oil prices and continued public spending support a stable 2019 outlook on non-financial companies in the Gulf Cooperation Council (GCC), Moody's Investors Service said on Wednesday.
"Brent crude oil price above $60 a barrel allows countries with large fiscal buffers and small populations, such as the UAE, Kuwait and Qatar, to stimulate economic activity through greater spending," it noted.
Rated corporates, mainly government-related issuers (GRIs), will continue to benefit from strong competitive positions and a supportive environment.
While economic activity will benefit from government spending to expand oil and gas production and boost downstream petrochemicals and refining capacity, Moody's said mature state-owned corporates that are increasingly looking to diversify funding sources could lead to an uptick in capital market activity.