Fitch Reaffirms Saudi Arabia’s A+ Sovereign Rating on Strong Fiscal and External Fundamentals
Global ratings agency maintains Saudi Arabia’s credit grade with a stable outlook, citing robust fiscal buffers and external balance sheets
Fitch Ratings has reaffirmed Saudi Arabia’s long-term foreign-currency sovereign credit rating at “A+” with a stable outlook, underlining the Kingdom’s strong fiscal position, substantial external reserves and continued economic resilience.
The decision reflects confidence in Riyadh’s financial management, including a government debt-to-gross-domestic-product ratio and sovereign net foreign assets that are significantly stronger than the medians for both the “A” and the “AA” rating categories.
The affirmation comes amid broader economic reform efforts aimed at diversifying the economy beyond oil and bolstering non-oil revenue streams, contributing to a stable macroeconomic environment.
Fitch highlighted that Saudi Arabia’s fiscal buffers — including sizeable deposits and other public-sector assets — provide a significant cushion against external shocks and oil price volatility.
The agency further noted that prudent fiscal policies and ongoing reform initiatives under the Vision 2030 framework are enhancing the budget’s resilience and supporting sustainable growth.
Fitch projects that the Kingdom’s sovereign net foreign assets will remain a core credit strength in the medium term, reinforcing long-term stability and investor confidence as economic diversification progresses.
The stable outlook accompanying the A+ rating suggests that Saudi Arabia’s credit profile is expected to remain resilient in the face of evolving global economic conditions.
Fitch’s assessment reinforces Saudi Arabia’s position as a financially robust emerging economy with strong fundamentals, even as it navigates the challenges and opportunities presented by shifting energy markets and regional geopolitical dynamics.
The decision reflects confidence in Riyadh’s financial management, including a government debt-to-gross-domestic-product ratio and sovereign net foreign assets that are significantly stronger than the medians for both the “A” and the “AA” rating categories.
The affirmation comes amid broader economic reform efforts aimed at diversifying the economy beyond oil and bolstering non-oil revenue streams, contributing to a stable macroeconomic environment.
Fitch highlighted that Saudi Arabia’s fiscal buffers — including sizeable deposits and other public-sector assets — provide a significant cushion against external shocks and oil price volatility.
The agency further noted that prudent fiscal policies and ongoing reform initiatives under the Vision 2030 framework are enhancing the budget’s resilience and supporting sustainable growth.
Fitch projects that the Kingdom’s sovereign net foreign assets will remain a core credit strength in the medium term, reinforcing long-term stability and investor confidence as economic diversification progresses.
The stable outlook accompanying the A+ rating suggests that Saudi Arabia’s credit profile is expected to remain resilient in the face of evolving global economic conditions.
Fitch’s assessment reinforces Saudi Arabia’s position as a financially robust emerging economy with strong fundamentals, even as it navigates the challenges and opportunities presented by shifting energy markets and regional geopolitical dynamics.
