Riyadh – Mubasher: Standard & Poor's (S&P) has affirmed Saudi Arabia’s long- and short-term sovereign ratings at ‘A-/A-2’, with a stable outlook.

S&P highlighted the impact of the coronavirus pandemic and the lower oil prices on the kingdom’s economy and budget, projecting the country’s gross domestic product (GDP) to contract by 4.5% this year, according to a statement.

“The economy should begin to rebound from 2021 on, as global conditions improve,” the ratings agency said.

S&P expected a barrel of Brent crude will amount to $40 (up from $30) for the rest of 2020. It will then hike to $50 in 2021 and 2022, before rising to $55 in 2023.

Average Saudi oil production is projected to reach 9.2 million barrels per day (b/d) in 2020 and 9.6 million b/d in 2021, compared to 9.8 million b/d in 2019 and 10.3 million b/d in 2018.

Average Brent crude prices may stand at $40 in 2020 and $50 in 2021, compared with $64 in 2019 and $71 in 2018.