The credit rating agency “Fitch” affirmed in its credit report to the Kingdom of Saudi Arabia its rating at “A” with a modification of the future outlook from “stable” to “positive”, compared to its report published in July 2021.
SPA stated that Fitch’s rating of the Kingdom and the modification of its future outlook to “positive” came as a result of Saudi Arabia’s commitment to strengthening public financial governance and its continuation of structural reforms.
Saudi Arabia has implemented many plans to diversify the economy, and its oil revenues have increased as a result of the improvement in prices.
It is predicted that by 2025, the public debt as a percentage of GDP will have stabilized at less than 30%, which is about half of the average level of public debt as a percentage of GDP in nations with “A” credit ratings.
Kingdom of Saudi Arabia seeks to maintain large financial reserves during the coming period, including deposits in the Central Bank, which exceed 10% of GDP.
In its report, the agency expected the continuation of positive growth in the Saudi economy and the recording of budget surpluses during 2022 and 2023 for the first time since 2013, equivalent to 6.7% and 3.5% of GDP, respectively.