Fitch Affirmed Saudi Arabia’s credit rating at ‘A+’; with Stable Outlook

Fitch Ratings has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with Stable Outlook.

The affirmation reflects the Kingdom’s strong fiscal and external balance sheets, with government debt/GDP and sovereign net foreign assets (SNFA) considerably stronger than both the ‘A’ and ‘AA’ medians, and significant fiscal buffers in the form of deposits and other public sector assets.

Fitch expects the Kingdom’s SNFA to remain a key credit strength at (35.3%) of GDP in 2027, which is larger than relative to ‘A’ median (3.1% of GDP), supported by prudent fiscal management and stable external positions. Fitch highlighted the fiscal reforms that increase the budget’s resilience to oil price volatility and a continuation of economic reform that supports strong growth of the non-oil economy, could have a positive impact on the rating.