Saudi Gazette report

RIYADH — Fitch Ratings has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook.

Fitch noted, in its recent report, that the rating reflects the Kingdom's strong fiscal and external balance sheets. “The government debt/GDP and Sovereign Net Foreign Assets (SNFA) significantly stronger than both the 'A' and 'AA' medians,” it said while highlighting the Kingdom's significant fiscal buffers in the form of deposits and other public-sector assets.

Fitch projects that the Sovereign Net Foreign Assets (SNFA) will reach 63.7 percent of gross domestic product (GDP) in 2024-2025, a figure that is considerably higher than the 'A' median of 8.7 percent of GDP. The agency emphasized that fiscal reforms, designed to enhance the budget's resilience to oil price volatility, could positively influence the rating.

Additionally, Fitch expects robust growth in non-oil exports, with the services balance deficit projected to continue narrowing, driven by strong growth in the travel account.