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The international credit rating agency “Moody’s” updated its credit report for Saudi Arabia affirming its “A1″ rating for the Kingdom and revising the stable outlook rating to positive.
The rating affirmation is based on Moody’s assessment of the government’s improving track record of fiscal policy effectiveness and the comprehensive regulatory and economic reforms that will support the sustainability of the economic diversification efforts over the medium and long term. This is in addition to the reforms and investments in various non-oil sectors which will materially reduce the Kingdom’s reliance on hydrocarbons over time.
The agency also indicated the important role of the government-sponsored diversification projects and initiatives, supported by private sector investment, and their positive impact on economic growth and the improving outlook rating.
Moody’s report represents a lauding of the Kingdom’s continuity in adoption fiscal policies that contribute to maintaining fiscal sustainability, improving public financial management, and raising the quality of fiscal planning to enhance economic growth and high efficient use of resources under its Fiscal Sustainability Program (one of the Vision 2030 programs). This is in addition to keeping the debt at a moderate level which is lower than most similarly-rated sovereigns, availability of robust fiscal buffers, and a competitive position in the global energy market.