Fitch: Saudi banks recover from Covid-19 pressures

Fitch Rating Agency revealed that Saudi banks are recovering from pressures resulted from Covid-19.

According to Reuters, the agency added that economic activity of the Saudi banking system is showing a moderate recovery supported by oil price increase which boosts the governmental spending.

Fitch Ratings had revised the Outlook on Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Positive from Stable and affirmed the rating at ‘A’ in April.

The agency added in its report that Saudi Arabia will record budget surpluses in 2022-2023 for the first time since 2013, equal to 6.7% and 3.5% of GDP, respectively assuming Brent crude oil prices will average USD100/bbl and USD80/bbl and that Saudi Arabia’s oil production will average 10.7 million b/d and 11.1 million b/d, respectively.