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RIYADH, April 10 2020 (WAM)
Global rating agencies affirmed the strength and resilience of the Saudi economy despite the exceptional crisis the world is witnessing with the outbreak of the new Corona virus (Covid 19), by fixing the credit rating of the Kingdom.
Yesterday, Fitch announced the confirmation of Saudi Arabia’s long-term credit rating at “A” with a stable outlook, explaining that the rating confirmation reflects the Kingdom’s financial strength, including exceptionally high foreign reserves, and a low public debt ratio.
The global rating agency confirmed that Saudi Arabia still has one of the largest sovereign assets of counterpart countries, confirming the long-term credit rating of foreign bonds in the Kingdom / IDR / at “A” with a stable outlook.
The agency raised its estimates of real GDP growth in the Kingdom for the current year to 4.9 percent, compared to 2.0 percent in its latest estimates made last October, expecting the growth of Saudi real GDP to 4.9 percent and 4.7 percent during the years 2020 and 2021 AD. Respectively.
For its part, Moody’s credit rating agency updated its credit report to the Kingdom at A1 with a stable outlook, indicating that the kingdom is the second largest oil producer (including natural and condensed gas) in the world, and has significant reserves, and has long experience in Oil extraction 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 9. 7 percent to 7. 8 percent of GDP.
In this regard, “S&P Global” agency confirmed last March its rating of sovereign debt to Saudi Arabia at 2 – A / – A with a stable outlook, saying that its estimates of the strong position of the Kingdom’s net assets remain 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 that the world is currently experiencing.
