Moody's upgrades Saudi Arabia to ‘Aa3’; outlook changed to positive - Mubasher Info

Riyadh – Mubasher: Moody's ratings upgraded Saudi Arabia's long-term local and foreign currency issuer and senior unsecured ratings to ‘Aa3’ from ‘A1’, according to a press release.

The rating agency also raised the Kingdom’s local and foreign currency medium-term note programme ratings to ‘(P)Aa3’ from ‘(P)A1’.  Meanwhile, the outlook has been changed to stable from positive.

“Our baseline projections assume there will be no significant downward pressure to oil prices or production over the next few years,” Moody's highlighted.

It noted: “We also assume that heightened geopolitical tensions in the region, which are having a limited impact on Saudi Arabia so far, will not escalate into a full-scale military conflict between Israel and Iran with collateral effects that could affect the kingdom's ability to export oil or deter private sector investment supporting the diversification momentum.”

As for the stable outlook, it reflects balanced risks to the rating at a higher level.

Moody's has expected that the non-oil private sector gross domestic product (GDP) of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the GCC region. 

Source: Mubasher Source: {{details.article.source}}