Saudi’s ratings have ‘stable’ outlook: CI Ratings

CAIRO – 25 June 2017: Saudi Arabia’s economic outlook was rated stable, with Long-Term Foreign and Local Currency Rating and Short-Term Foreign and Local Currency Ratings kept at A+ and A1 respectively, CI Ratings said in a research note published Saturday.

The stable outlook would mean that Saudi Arabia’s rating will be stable over the next 12 months, the Cyprus-based think-tank highlighted.

“The ratings mainly reflect the sheer size of the country's hydrocarbon reserves, as well as the relatively strong level of external assets under the management of the Saudi Arabian Monetary Agency (SAMA), despite their continued steep decline,” the report said.

Expecting an improvement in fiscal performance, CI Capital, however, anticipated fiscal and external buffers to see pressure over short and medium terms as it said reform measures could not fix the budget deficit as a result of low international oil prices.