Moody’s Affirms Saudi Arabia’s Credit Rating at A1, with Positive Outlook

The leading global agency for credit ratings, Moody’s, has affirmed Saudi Arabia’s credit rating at A1, with a positive outlook, reported the Saudi Press Agency (SPA).

In its credit report, the agency confirmed that the Kingdom’s rating was based on the tangible progress achieved by the government in implementing sweeping reforms agenda since 2016, and the effectiveness of its fiscal and macroeconomic policies, which support sustainable economic diversification.

Moody’s projected that the continuous implementation of large diversified projects will support non-oil real GDP growth. It attributed this to the design of these projects, which aims to make them modular and commercialized in phases, enhancing their efficacy and ease of execution.

The global credit agency said that the positive outlook reflects reforms and investments in various non-oil sectors, which, over time, will lead to a tangible decrease in the Kingdom’s economic and financial dependence on oil.

Moreover, Moody’s touched upon Saudi Arabia’s growing economy, the government’s efforts to improve institutions and increase policy effectiveness, and the Kingdom’s strong fiscal position and large foreign currency reserves.

In March, fellow rating agency S&P Global affirmed the Kingdom’s sovereign rating and outlook owing to significant social and economic reforms. The agency projected an average growth of 3.3% during 2024-2027, driven by significant economic diversification and non-oil sector investments alongside strong consumption growth.

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