S&P affirms Saudi ratings at ‘A-/A-2’ with stable outlook

20/11/2017 Argaam


Standard & Poor’s Global Ratings has affirmed Saudi Arabia’s rating at “A-/A-2” with a stable outlook following the Kingdom’s latest policy changes and widespread corruption crackdown.

 

“In our view, recent shifts in Saudi Arabia's political power structures and societal norms, alongside various regional stresses, could increase the risk of policy mistakes that could result in increased domestic and geopolitical tensions,” S&P said in a statement. “However, we also consider that these structural reforms could empower Saudi citizens and make Saudi Arabia more attractive to investors over the medium term, as the authorities intend.”

 

S&P said the stable outlook is based on expectations that the Kingdom will take steps to consolidate public finances and maintain government liquid assets close to 100 percent of GDP over the next two years.

 

Earlier this month, Fitch affirmed Saudi Arabia’s credit rating at “A+” with a stable outlook, supported by the strength of the Kingdom’s economy and the effectiveness of its social and economic reforms implemented by the government, the agency said.

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