Fitch affirms Saudi Arabia’s credit rating at “A+” with a stable outlook.
Fitch Ratings Affirms Saudi Arabia’s Credit Rating at “A+” with Stable Outlook
Fitch Ratings has announced that it has assigned Saudi Arabia a credit rating of “A+” with a stable outlook, according to a recent report. This rating reflects the Kingdom’s strengthening financial position and substantial financial reserves. Notably, Saudi Arabia’s government debt levels and net foreign assets exceed the averages of countries rated “A” and “AA.”
Resilience of the Saudi Economy
Fitch emphasized that Saudi Arabia has maintained the resilience of its economy despite fluctuating geopolitical conditions. The Kingdom has benefited from robust non-oil economic activities and a stable public budget. These factors contribute significantly to the national economy’s stability and sustainable growth.
Economic Growth Projections
Fitch forecasts a slowdown in real GDP growth, predicting it will reach 0.6% in 2026. However, the outlook improves for 2027, as the resumption of shipping flows through the Strait of Hormuz and increased production of oil and petrochemicals are expected to drive growth. Consequently, the growth rate is projected to rise to 2.9% by 2028.
Conclusions from the Report
The “A+” credit rating with a stable outlook underscores Saudi Arabia’s commitment to sustainable economic development strategies. This rating enhances investor confidence in the Saudi economy, which plays a crucial role in attracting foreign investments and fostering economic growth.
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