Moody's upgrades Saudi Arabia's Outlook to 'Stable', affirms 'A1' rating

Kingdom of Saudi Arabia flag

Moody's raised Saudi Arabia's Outlook to 'Stable' from 'Negative' and affirmed its rating at 'A1'.

The agency stated that its rating reflects the possibility that the Saudi government would reverse most of its 2020 debt growth while maintaining fiscal buffers.

Moody’s praised the Kingdom's fiscal policies effectiveness evidenced by policy responses in periods of both low and high oil prices, which consistently shows a commitment to controlling and sustaining the public financial position over the long term.

Higher oil prices are expected to improve the public financial position over the next years. However, Stable Outlook takes into account that oil prices will remain volatile.

The Kingdom recorded a surplus of SAR 6.7 billion in Q3 2021 budget.