International agency Fitch Ratings has reaffirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at A+. The outlook remains stable, reflecting the Kingdom’s formidable fiscal buffers and sustained reform progress.
Fitch’s latest report underscores the exceptional strength of Saudi Arabia’s core financial metrics. Crucially, key indicators significantly outperform peers. The sovereign net foreign asset position and the debt-to-GDP ratio are much stronger than the medians for both ‘A’ and even higher ‘AA’ rated countries.
Furthermore, the Kingdom commands substantial financial reserves. These reserves, held as public sector deposits and other assets, provide powerful support for macroeconomic stability.
Projected Strength and Reform Momentum
Looking ahead, Fitch projects Saudi Arabia’s sovereign net foreign assets will remain a cornerstone of credit strength. The agency forecasts these assets will reach 35.3% of GDP by 2027. This figure towers above the modest 3.1% of GDP average for ‘A’ category sovereigns.
Fitch also highlighted the government’s ongoing fiscal reforms. These crucial initiatives aim to enhance budget flexibility and sharply reduce oil revenue dependence. Moreover, the agency noted a sustained rise in non-oil revenues. Together, these powerful factors continuously reinforce the Kingdom’s overall credit profile.
