Moody’s cuts Saudi Arabia’s credit outlook to negative, cites oil-price shock driven by coronavirus

Moody’s cuts Saudi Arabia’s credit outlook to negative, cites oil-price shock driven by coronavirus

"The government's balance sheet has weakened since the previous oil price shock in 2015-16, notwithstanding some recent improvements in budget execution, leaving the sovereign's credit profile exposed to the further prolonged period of depressed oil prices that the pandemic may usher in," Moody's wrote.. Over the weekend, the Saudi finance minister said the kingdom will take strict and painful measures to reduce its budget, CNBC reported .. The coronavirus pandemic has cratered global oil demand and sent prices plummeting, even into negative territory for the first time ever .. On Friday, Moody's downgraded Saudi Arabia's sovereign outlook to negative from stable, citing increased downside risks to the kingdom's fiscal strength from the oil rout.. Over the weekend, the Saudi finance minister Mohammed al-Jadaan said that the country will have to take strict and painful measures amid the coronavirus crisis, according to CNBC .. Moody's affirmed Saudi Arabia's A1 rating, saying that it is "supported by the government's still relatively robust, albeit deteriorating, balance sheet, which is underpinned by a still-moderate debt level and substantial fiscal and external liquidity buffers.".