Fitch affirms the Kingdom’s credit rating at A+, a stable outlook

Fitch Ratings affirmed the Kingdom’s credit rating at A+ with a stable outlook, according to its recently issued report.

The agency explained in its report that the Kingdom’s credit rating reflects the strength of its financial position, as the debt-to-GDP ratio and sovereign net foreign assets were above the averages of the “A” and “AA” ratings, in addition to the presence of large financial reserves in the form of deposits and other public sector assets.

The agency stated that sovereign net foreign assets will be equivalent to 63.7% of GDP during 2024-2025, which is considered higher than the average rating of “A” (8.7% of GDP). The agency also indicated that the Kingdom will continue with financial reforms; which will increase the flexibility of the general budget in the face of oil price fluctuations.

The agency indicated its expectations that the non-oil export sector will witness strong growth, with the continued decline in the deficit in the services balance, driven by the accelerated growth in the travel item.