Moody’s reaffirms Saudi Arabia’s sovereign credit rating at Aa3
Moody’s Investors Service has reaffirmed Saudi
Arabia’s sovereign credit rating at Aa3 with a stable outlook, citing the
Kingdom’s robust economic fundamentals, extensive oil reserves, and ongoing
progress under its Vision 2030 reform plan.
In its announcement on Friday, Moody’s
highlighted the resilience of the Saudi economy, underpinned by significant
hydrocarbon resources and a strong competitive position in global energy
markets. The agency also noted improvements in government institutions and
policy effectiveness as contributing factors.
“Saudi Vision 2030 continues to drive non-oil
economic growth through sustained government investment, structural reforms,
and enhanced fiscal and economic transparency,” Moody’s said.
Read More Saudi
Vision 2030 to benefit global Islamic finance
The stable outlook reflects the Kingdom’s
ability to manage regional geopolitical tensions and potential disruptions,
supported by economic flexibility and strategic infrastructure such as the
East-West pipeline, which facilitates crude oil exports through the Red Sea.
Moody’s expects Saudi Arabia to continue
advancing economic diversification in the coming years, with reforms spanning
judicial, economic, and social sectors. The agency noted that these measures
have bolstered the services sector and strengthened the non-oil economy.
The report projects non-oil private sector GDP
growth to rebound to 4–5% once regional geopolitical pressures ease, among the
highest in the Gulf region. Moody’s emphasized that ongoing structural reforms,
sustained government investment, and an expanding role of the private sector
underpin this positive outlook.
This latest assessment follows a recent
decision by S&P Global Ratings, which maintained Saudi Arabia’s credit
rating at A+/A-1 with a stable outlook.
Source:
Saudi Gazette
0 Comments