Moody’s affirms Saudi Arabia’s A1 ratings
Credit rating agency Moody’s has changed the outlook on the Saudi government from negative to stable.
The agency predicted the Saudi economy will return to positive growth in 2021, and the current account level will return to a surplus as the fiscal deficit shrinks in 2021, accompanied by a reduction in the level of debt in the medium term. Moody’s expects Saudi Arabia’s fiscal deficit to narrow sharply in 2021 to less than 2.5 percent of GDP from 11.2 percent of GDP in 2020 and to remain close to balance in the next several years.
The affirmation of the A1 ratings reflects Moody’s view that Saudi Arabia’s structural vulnerability, due to its economic and fiscal reliance on the hydrocarbon sector, will remain a constraint on the rating for the foreseeable future.
