international rating agencies affirmed the strength and resilience of the Saudi
economy despite the exceptional crisis that the world is currently witnessing
with the outbreak of the new Coronavirus (Covid 19), by maintaining the credit
rating of the Kingdom.
On Thursday, Fitch announced the affirmation of Saudi Arabia’s long-term credit rating at “A” with a stable outlook, explaining that the rating affirmation reflects the financial strength enjoyed by the kingdom, including exceptionally high foreign reserves, and a low public debt ratio.
The global rating agency indicated that Saudi Arabia still has one of the largest sovereign assets of the counterpart countries, confirming the long-term credit rating of foreign bonds in the Kingdom (IDR) at “A” with a stable outlook.
With regard to economic growth, the agency raised its estimates of real GDP growth in the Kingdom for the current year to 4.9%, compared to 2.0% in its latest estimates conducted last October, expecting the growth of Saudi real GDP by 4.9% and 4.7% during the two years 2020. And 2021 respectively.
In the same context, the credit rating agency “Moody’s” updated its credit report for the kingdom at A1 with a stable future outlook, noting that the kingdom is the second largest oil producer (including natural and condensed gas) in the world, has significant reserves, and has long experience in extracting oil at the lowest costs, which provides the kingdom with a high degree of competitive advantage over other oil producers.
The agency raised its estimate for the 2020 budget deficit from 7.9% to 8.7% as a percentage of GDP.
For its part, S&P Global in March affirmed its sovereign debt rating of Saudi Arabia at ‘A-/A-2’ with a stable outlook, saying that its estimates of the strong position of the kingdom’s net assets remains a major support factor for the ratings.
These positive estimates of the global rating agencies confirm the great confidence enjoyed by the Saudi economy, as well as the strength of the kingdom’s financial position and its ability to continue to grow and meet challenges, especially in light of the crises and exceptional circumstances the world is currently experiencing.
Source: Saudi Press Agency