Saudi Arabia’s credit rating at ‘A1’ with stable outlook, says Moody’s

Riyadh: Rating agency “Moody’s” has updated its credit report for Saudi Arabia confirming its “A1” rating for the Kingdom of Saudi Arabia with a stable outlook.

The rating assertion is based on Moody’s assessment of the government’s improving track record of fiscal policy effectiveness, as evidenced by policy responses to periods of low and high oil prices, which demonstrate a commitment to fiscal consolidation and longer-term fiscal sustainability.

In its report, the agency expects continued positive real GDP growth averaging 5.0% over the 2021-2023 period, supported by a renewed post-pandemic recovery, progress in economic diversification, investment and development projects, and a new oil outcome. production cuts.

Despite rising oil prices, the agency also expects the government’s continued commitment to medium-term fiscal consolidation and improvements in expenditure control, which demonstrate a more robust fiscal policy framework. more effective in Saudi Arabia.

Moody’s assessment of Saudi Arabia’s financial institutions highlights the positive impact of structural measures and reforms undertaken by the Kingdom over the past five years. In addition to the government’s tangible progress in improving its domestic business environment, this illustrates the effectiveness of fiscal policy and the increased efficiency of government.

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