S&P has affirmed its ‘A-/A-2’ unsolicited long- and short-term foreign and local currency sovereign credit ratings on Saudi Arabia. The outlook is stable.
The agency said, “The stable outlook is based on our expectation that economic growth will
accelerate moderately in 2018, supported by rising government investment. At the same time, we expect that the Saudi authorities will continue to take steps to consolidate public finances over the next two years, while maintaining Saudi Arabia’s formidable stocks of liquid external assets.”
An unexpected materialisation of contingent liabilities or a build-up of arrears could place additional pressure on expenditures. The ratings could also come under pressure if the agency observed a significant increase in domestic or regional political instability, which would have fiscal consequences.