S&P Global, Moody’s raise Saudi Arabia rating on reform agenda

S&P Global, Moody’s raise Saudi Arabia rating on reform agenda

S&P Global has revised upwards its sovereign rating on Saudi Arabia to “A/A-1”, citing significant reform momentum in recent years and the Gulf state’s economic diversification strategy to advance the development of the non-oil sector and shift dependence away from oil revenues. “Saudi Arabia’s significant reform momentum in recent years has begun to deliver structural improvements to its economy and fiscal and debt management,” said S&P Global in a statement. The rating agency said it may upgrade Saudi Arabia over the next two years if “we observe further progress on institutional reforms”, including strong per capita economic growth and fiscal consolidation. Moody’s also raised its outlook on the kingdom to positive, saying the structural reforms that are being implemented will reduce the country’s reliance on oil and gas revenues and its exposure to crude cycles. The rating agency reaffirmed its “A1” rating on Saudi Arabia. Fitch Ratings, one of the big three rating agencies, assigns the kingdom the same score as S&P Global while Moody’s has it one level higher. Saudi Arabia’s GDP expanded by 8.7 per cent in 2022, the highest among G20 countries, as the kingdom’s non-oil sector and positive developments in the hydrocarbon market helped the Arab