Saudi Arabia’s Sovereign Ratings Affirmed; Outlook Remains Negative

Ref: SA21CRA00-01 25 June 20 2 1

Saudi Arabia’s Sovereign Ratings Affirmed; Outlook Remains Negative

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 Long-Term Local Currency Rating (LT LCR) at ‘A+, while its Short-Term Foreign Currency Rating (ST FCR) and Short-Term Local Currency Rating (ST LCR) have been affirmed at ‘A1’. The Outlook for all ratings remains Negative .

Rating Rationale

The ratings are supported by still large – albeit declining – external and fiscal buffers, the recent rebound in oil prices and non-oil economic activity, very large oil reserves, and a sound banking sector. The ratings are constrained by very large financing needs aris ing from Vision 2030-related investment commitments, the economy’s limited diversification, the decreasing transparency of budgetary operations, substantial…