(MENAFN) Moody's, the international credit rating agency, has updated its credit report for Saudi Arabia, revising the stable outlook rating to positive and reaffirming the Kingdom's "A1" rating. The rating reflects Moody's assessment of the government's track record of fiscal policy effectiveness and the comprehensive regulatory and economic reforms that will support the sustainability of the economic diversification efforts over the medium and long terms, according to Saudi Press Agency.
One of the key factors in the rating upgrade is the Kingdom's ongoing reforms and investments in various non-oil sectors, which will reduce its reliance on hydrocarbons over time. The agency also praised the role of government-sponsored diversification projects and initiatives, supported by private sector investment, and their positive impact on economic growth and the improved outlook rating.
The report is a validation of the Kingdom's fiscal policies as part of its Vision 2030 programs, which aim to diversify the economy away from oil and towards a more sustainable future. Moody's also noted that Saudi Arabia's debt level is moderate, lower than most similarly rated sovereign debts, offering robust fiscal buffers and a competitive position in the global energy market.
The positive outlook rating could lead to further upgrades in the future, as the Kingdom continues to make progress in its economic diversification efforts and fiscal policies. The affirmation of the "A1" rating is a testament to the government's commitment to sustainable economic growth and stability, despite the challenges posed by the COVID-19 pandemic and fluctuating oil prices.
Overall, the Moody's report is good news for Saudi Arabia, as it confirms the effectiveness of its economic reforms and diversification efforts, and provides a positive outlook for the future. The Kingdom's commitment to fiscal prudence and sustainable growth will continue to attract investors and strengthen its position in the global economy.
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