Riyadh – Mubasher: Moody's Investors Service on Wednesday maintained Saudi Arabia’s sovereign credit rating at A1 with a stable outlook, according to a statement by the Saudi finance ministry.
The stable outlook indicated that the kingdom’s credit rating risks are largely balanced, the US-based rating agency said.
Saudi economic reform programmes, including fiscal balance scheme, are likely to improve competitiveness and employment in the Saudi private sector as the government seeks to achieve fiscal balance by 2023.
The international rating agency projected the oil-rich nation’s gross domestic product (GDP) to grow by 2.5% in 2019 and 2020.
Saudi Arabia’s economic diversification plans may contribute to the kingdom’s long-term economic growth, Moody's noted.
Moody's hailed Saudi Arabia’s non-oil revenues growth which registered 10.1% in 2018, higher than an estimate of 4.5% in 2014, supported by the kingdom’s financial reforms such as value added tax (VAT) and energy pricing reform.
On 30 April, Fitch Ratings maintained the kingdom’s credit rating at A+ with a stable outlook on the back of the country’s financial strength, including foreign reserves, low public debt, and large government assets.
