Riyadh – Saudi Arabia's long-term foreign-currency Issuer Default Rating (IDR) was affirmed at 'A+', Fitch Ratings said in a statement. The outlook on the ratings is stable.
The kingdom’s ratings are supported by robust fiscal and external balance sheets that include high international reserves, low government debt, large government assets, and its commitment to implementing economic reforms, the credit rating agency's report showed.
“This is under our current baseline Brent price assumption of USD57.5/bbl in 2018 and 2019, in line with Fitch's March 2018 Global Economic Outlook,” the report added.
The New York-based agency further indicated that the deficit in the 2018 budget, which was expected at 8.4% of gross domestic product (GDP), indicates a transfer to a more growth-supportive fiscal policy from austerity.
In the same vein, Fitch Ratings noted that the "immediate budgetary impact of structural non-oil revenue measures is being offset by additional spending to soften their social impact."