Fitch affirms Saudi Arabia's A+ credit rating with stable outlook

Zawya

4 days ago

RIYADH — Fitch Ratings has affirmed Saudi Arabia's long-term foreign currency issuer default rating at A+ with a stable outlook, highlighting the Kingdom's strong fiscal position and continued reform momentum.
In its latest report, the international rating agency said Saudi Arabia's credit rating reflects the robustness of its financial fundamentals.
It noted that key indicators —such as the sovereign net foreign asset position and the debt-to-GDP ratio— are significantly stronger than the averages for countries in the "A" and even "AA" rating categories.
Fitch emphasized that the Kingdom holds substantial financial reserves in the form of public sector deposits and other assets, supporting its macroeconomic stability.
Looking ahead, the agency projected that Saudi Arabia's sovereign net foreign assets will remain a cornerstone of its credit strength, reaching 35.3% of GDP by 2027.
This figure stands well above the average for countries rated 'A,' which is just 3.1% of GDP.
Fitch also pointed to the ongoing fiscal reforms undertaken by the Saudi government, aimed at improving budget flexibility and reducing dependence on oil revenues.
The agency said these reforms, along with a sustained rise in non-oil revenues, continue to reinforce the Kingdom's credit profile.
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