Moody's Upgrades Saudi Arabia's Credit Rating

Foreks - The international credit rating agency Moody's has upgraded Saudi Arabia's credit rating. According to the announcement from Moody's, the country's long-term issuer and senior unsecured bond ratings in both local and foreign currencies have been raised from "A1" to "Aa3." Moody's indicated that the upgrade reflects its assessments that economic diversification is continuing to progress and the momentum will be sustained. The statement noted, "Ongoing progress will further reduce Saudi Arabia's exposure to developments in the oil market and the long-term carbon transition over time." It continued, "Additionally, a recent fiscal area exercise that will be regularly reviewed, along with the recalibration and reprioritization of diversification projects, will provide a more conducive environment for the sustainable development of the country's non-hydrocarbon economy and will help maintain the relative strength of the sovereign's balance sheet." Moody's expects that non-hydrocarbon private sector GDP growth will continue to rise by approximately 4-5% over the coming years. Following the upgrade, Moody's revised the credit rating outlook from "positive" to "stable."