Riyadh – Mubasher: Fitch Ratings has affirmed Saudi Arabia's long-term foreign-currency issuer default rating (IDR) at 'A', with a stable outlook, according to a press release on Thursday.

The leading provider of credit ratings referred that the rating shows Saudi Arabia's strong financial and external balance sheets with high international reserves and low government debt.

These balance sheets have been declining due to the recent accelerated plunge in oil prices.

Fitch expected that the government budget deficit will surge to around 12% of the gross domestic product (GDP) or $80 billion in 2020 from 4.5% in 2019.

The oil revenues will drop by 41% if the average oil price records $35 per barrel, and average production reaches11.5 million barrelsday.

In addition, the non-oil revenue is forecast to decrease by 15% due to the coronavirus (COVID-19) pandemic.

The credit rating agency expected that the deficit could decline to 7% of GDP in 2021 if the oil prices are recovered to $45 pb, alongside with an easing of the COVID-19 crisis and restrained spending growth in Saudi Arabia.