GCC: LIQUID ASSETS STATISTICS.
Summary: The Gulf Cooperation Council countries are among the 22 sovereigns with liquid assets exceeding 25% of GDP, and three of them have liquid assets worth more than 100% of GDP, S&P Global Ratings said in its report titled Ee"Government Liquid Assets And Sovereign Ratings: Size MattersEe".
The Gulf Cooperation Council countries are among the 22 sovereigns with liquid assets exceeding 25% of GDP, and three of them have liquid assets worth more than 100% of GDP, S&P Global Ratings said in its report titled Ee"Government Liquid Assets And Sovereign Ratings: Size MattersEe". The seven sovereigns rated by S&P Global Ratings have liquid government assets totaling more than 100% of GDP, notably, three are members of the Gulf Cooperation Council. Of the seven sovereigns whose assets exceed 100% of GDP, some are hydrocarbon producers: Kuwait, Abu Dhabi and Qatar. Combined, the seven have accumulated US$ 3 trillion in assets (200% of GDP on average) to date. Such assets, which are typically managed by sovereign wealth funds, represent the largest component of our estimates. The majority of these assets are invested externally, the report noted. S&P Global Ratings considers all of a sovereign's external general government assets to be liquid if the amount exceeds 100% of GDP when calculating net general government debt and narrow net external debt ratios. S&P believes that the sovereign will be able to utilize a significant portion of its assets in the event of financial distress to support its creditworthiness. The report added that the average rating on the seven sovereigns is Ee"AAEe", compared with an average of 'BBB-' on all sovereigns S&P rated globally. The ratings on Kuwait and Abu Dhabi remained stable at Ee"AAEe" throughout the recent slump in oil prices, underlining the rating stability provided by having large liquid assets, the report highlighted adding that S&PEe's rating on Qatar moved to Ee"AA-Ee" from Ee"AAEe" in August 2017. It noted that Bahrain, Oman, and Saudi Arabia felt the drop in prices more keenly and their stock of liquid assets is below 100% of GDP.
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