Fitch cuts Saudi outlook to negative amid coronavirus, oil price impact

Fitch cuts Saudi outlook to negative amid coronavirus, oil price impact

The revision for Saudi Arabia 'reflects the continued weakening of its fiscal and external balance sheets', says ratings agency

Saudi Arabia's outlook has been cut to negative from stable by Fitch Ratings as the coronavirus pandemic and lower oil prices clobber the kingdom's finances.

A negative outlook means the next move on the credit rating may be a downgrade to the lowest level since Fitch began assessing the kingdom in 2004.

The sovereign is still at A, its sixth highest rating, and on par with Japan and Iceland, according to a statement on Monday.

Oil revenue was down 45% in the second quarter from the same period last year to $25.5 billion

Fitch last downgraded Saudi Arabia in 2019 and has its assessment one notch above S&P Global Ratings and one level lower than Moody's