Credit rating agency “Moody’s” affirmed in its Saudi report giving an A1 rating with a stable outlook.
This classification came hours after the Kingdom announced that it had achieved a growth of 9.9 percent in the first quarter, more than an initial estimate of 9.6 percent last month.
A statement by the National Center for Debt Management in Saudi stated that the agency said in its report that its confirmation of the Kingdom’s classification came as a result of the government’s continued development of fiscal policy and the ability to respond and adapt to fluctuating oil prices, which demonstrates a commitment to controlling public finances and financial sustainability in the long term.
The agency also suggested that the positive growth of the Kingdom’s real GDP would continue by 5% on average in the period from 2021 to 2023, supported by further recovery from the Corona pandemic, in addition to the remarkable progress in economic diversification, development and capital projects, and limiting the decline in oil production.
In its report, Moody’s expected the Kingdom’s continued commitment to more fiscal control in the medium term, and to continue to improve spending policy and raise efficiency, despite the rise in oil prices, which shows a more effective framework for public fiscal policy.
