Moody’s Affirms Saudi Arabia’s Credit Rating at ‘A1’ with Positive Outlook
In a recent report by the Saudi Press Agency, Moody’s, the global credit rating agency, has upheld Saudi Arabia’s credit rating at ‘A1’ with a positive outlook. This affirmation comes as a result of Moody’s recognition of the significant progress made by the government in implementing a comprehensive reform agenda since 2016.
Moody’s also cited the effectiveness of Saudi Arabia’s macroeconomic and fiscal policies as key factors that will contribute to the sustainability of the country’s economic diversification. The agency expects that the continued implementation of major diversification projects in Saudi Arabia will bolster nonhydrocarbon real GDP growth, as these projects are designed to be modular and commercialized in phases.
The positive outlook provided by Moody’s reflects the ongoing reforms and investments in various nonoil sectors, which are anticipated to reduce the Kingdom’s economic and fiscal dependence on hydrocarbons in the long run. Additionally, Moody’s highlighted Saudi Arabia’s large economy, improving institutions, policy effectiveness, robust balance sheet, and substantial foreign currency reserves as further strengths of the country.