Moody’s updates Saudi Arabia’s rating at A1, outlook stable

Moody's Investor Service updated its credit report for Saudi Arabia at A1 with a stable outlook, the rating agency said in a recent report.

Saudi Arabia's credit profile is backed by a robust government budget, substantial liquidity with foreign reserves, and prudent financial system regulation.

The Kingdom’s credit strengths stem from relatively low debt levels, a large stock of oil reserves and low exploration costs.

Moody’s added that the stable outlook on the sovereign rating reflects the rating agency’s view that risks to Saudi Arabia's credit profile are broadly balanced. Positive developments could stem from the implementation of reforms that enhance competitiveness and private-sector employment while moving the budget towards balance.