Riyadh-Mubasher: The global rating agency Moody's has affirmed Saudi Arabia's ‘Aa3’ long-term issuer rating and maintained a stable outlook.

The rating reflects the kingdom's ample financial assets, which will allow it to weather a period of lower oil revenues and maintain a fiscal profile compatible with the current rating, the agency said.

Moody's long-term and short-term country ceilings for Saudi Arabia’s bonds and bank deposits are unaffected by the rating action and remain at ‘Aa3/P-1’.

The kingdom's ‘Aa3’ rating retains a stable outlook because the government's very substantial financial resources and low indebtedness indicate that its financial strength will remain solid over the coming years, outweighing the negative impact of the recent fall in oil prices, Moody’s said.

Moreover, the government's very low level of debt, at 1.6% of GDP at the end of 2014, allows it the flexibility of issuing domestic debt to finance its deficits in the next one or two years.

The agency forecasts that the financing of the government deficits in the next two years will come from a combination of debt issuance and drawing down of financial assets.

However, while the ratio of government debt to GDP is likely to rise over that period, Moody's expects it to remain very low in comparison to other similarly rated sovereigns and not to pose credit concerns.