Saudi Arabia’s Ratings Affirmed with a Stable Outlook

Rating Action

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Saudi Arabia’s Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) at ‘AA-’. At the same time, CI Ratings has affirmed the sovereign’s Short-Term (ST) FCR and ST LCR at ‘A1+’. The Outlook on the ratings remains Stable.

Rating Rationale

The ratings reflect Saudi Arabia’s strengthening economic resilience and its enhanced capacity to absorb external shocks, underpinned by the country’s very strong international liquidity position and a gradually declining – though still elevated – dependence on hydrocarbon production. The latter is largely driven by the implementation of structural reforms under Saudi Vision 2030. The ratings also take into consideration the availability of substantial fiscal and external buffers, which have remained intact despite extended periods of voluntary oil production cuts.

The ratings are supported…