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Fitch has revised its outlook on Saudi Arabia to ‘positive’ from ‘stable’, and affirmed its A rating, citing improvements in the sovereign balance sheet, higher oil prices and commitment to fiscal consolidation.
The ratings agency has also forecasted that government debt to GDP will remain below 30 percent until 2025 and that the government will retain significant fiscal buffers including deposits to the central bank in excess of 10 percent of the GDP.
The agency said the kingdom will record budget surpluses in 2022-2023 for the first time since 2013, equal to 6.7 percent and 3.5 percent of GDP, respectively, assuming Brent crude oil prices will average $100 per barrel and $80 per barrel, and that Saudi Arabia's oil production will average 10.7 million barrels per day and 11.1 million barrels per day, respectively.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
