Riyadh – Mubasher: A provisional (P)A1 senior unsecured MTN global scale rating (GSR) and an 'Aaa.sa' senior unsecured national scale rating (NSR) were assigned to the Saudi government’s domestic SAR-denominated Sukuk Issuance Program by Moody's Investors Service.
The rating agency has concurrently assigned an 'A1/Aaa.sa' senior unsecured GSR/NSR to the most recent Sukuk instrument issued under the said programme, according to a press release.
The (P)A1 program rating and the A1 Sukuk instrument rating mirror the Saudi government’s A1 issuer GSR. The GCC state’s A1 GSR is underpinned by the government’s robust, albeit deteriorating, balance sheet and helped by substantial external liquidity buffers.
On social risks, Moody's predicted that the labour market nationalisation policies and economic diversification efforts will help cut the unemployment rate for the citizens (12% in the fourth quarter of 2019) over time. However, these policies may fall short if the labour force growth outpace increased availability of jobs in the private sector.
In addition, Moody's regards the coronavirus outbreak as a social risk, given the substantial implications for public health and safety.
