Moody's affirms Saudi Arabia's A1 ratings

Moody's affirms Saudi Arabia's A1 ratings
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Riyadh - Mubasher: Moody's Investors Service has affirmed the Government of Saudi Arabia's long-term issuer and senior unsecured ratings at A1, with the outlook remaining stable.

The affirmation of Saudi Arabia's A1 ratings is supported by the view that the fiscal consolidation expected at the time of the last rating action will continue over the medium term, ensuring stabilization of the government's debt burden below 30% of GDP.

The ratings agency expects that the government's ambitious structural reform agenda will, over time, reduce the exposure of Saudi Arabia's economy and public sector balance sheet to oil prices, balanced against the associated execution risks given the large scale of the task at hand and the potentially negative short-term economic and social impact of some of the related measures.

Meanwhile, the stable outlook indicates that the risks to the ratings are broadly balanced, as the government's reform program, including the plans to balance the fiscal budget by 2023, could over time offer a route back to a higher rating level.