Sunday 08, October 2017 by Jessica Combes

Saudi Arabia rating affirmed at A-/A-2; outlook stable

 

S&P expects Saudi Arabia's external and government balance sheet positions will remain strong over 2017-2020.

S&P has affirmed its 'A-/A-2' foreign and local currency sovereign ratings on Saudi Arabia.

The stable outlook is based on its expectation that the Saudi authorities will take steps to consolidate public finances and maintain government liquid assets close to 100 per cent of GDP over the next two years.

On 6 October 2017, S&P Global Ratings affirmed its 'A-/A-2' unsolicited long- and short-term foreign and local currency sovereign credit ratings on the Kingdom of Saudi Arabia. The outlook is stable.

The stable outlook is based on S&P’s expectation that the Saudi authorities will take steps to consolidate public finances and maintain government liquid assets close to 100 per cent of GDP over the next two years. We could lower our ratings if we observed further deterioration in Saudi Arabia's public finances. Fiscal weakening could entail prolonged double-digit deficits as a percentage of GDP, a quicker drawdown of fiscal assets, or an unexpected materialisation of contingent liabilities. The ratings could also come under pressure if we observed a significant increase in domestic or regional political instability. We could raise the ratings if Saudi Arabia's economic growth prospects improved markedly beyond our current assumptions.

 

 

 

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