S&P affirms Saudi Arabia’s rating at 'A-/A-2' with stable outlook

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S&P Global Ratings affirmed Saudi Arabia’s sovereign credit ratings at ‘A-/A-2’ with a stable outlook.

The credit ratings agency said in a statement that the Saudi economy will likely return to the positive growth in 2021 after the contraction seen in 2020.

The gross domestic product (GDP) is forecast to grow by 2% in 2021 compared to a contraction by 4.1% in 2020.

The agency also expected the return of current account to surplus and reduction of the fiscal deficit ratios, driven by the improvement of global economy and recovery of oil prices, as the coronavirus is going to end.

The stable outlook indicates that the Kingdom's financial position and external net asset positions would remain strong enough over the next two years to support the ratings, S&P said.

It added that the Kingdom continues with its ambitious strategy of investment and economic diversification, making several important achievements of Vision 2030.