Saudi Arabia’s Sovereign Ratings Affirmed
Content is restricted
Summary
Ref: SA19CRA00-1 21 st June 2019
Saudi Arabia ’s Sovereign Ratings Affirmed
RATING ACTION
Capital Intelligence Ratings (CI Ratings or CI ) , the international credit rating agency, today announced that it has affirmed Saudi Arabia’s Long-Term Foreign Currency Rating (LT FC R ) and Long-Term Local Currency Rating (LT LC R) at ‘A+’. The sovereign’s Short-Term Foreign Currency Rating (ST FC R ) and Short-Term Local Currency Rating (ST LC R) have also been affirmed at ‘A1’. The Outlook for the ratings remains Stable.
RATING RATIONALE
The ratings balance the still low government debt and large net external asset position against significant geopolitical risks and the economy’s limited diversification. The ratings also take into account the country’s very large oil res erves, sound banking sector, moderately wea k institutional strength , and moderate-to-high policy risk.
Despite an upward trend in the trajectory of…