Fitch Ratings has affirmed Saudi Arabia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A+' with Stable Outlook.
The agency indicated in its report that the rating reflects the Kingdom's strong fiscal and external balance sheets, with government debt/GDP and Sovereign Net Foreign Assets (SNFA) considerably stronger than both the 'A' and 'AA' medians, and significant fiscal buffers in the form of deposits and other public sector assets.
The agency assumed the Sovereign Net Foreign Assets (SNFA) will be at 63.7% of GDP in 2024-2025, which is large relative to 'A' median (8.7% of GDP). Fitch also highlighted that the fiscal reforms, which increase the budget's resilience to oil price volatility could have a positive impact on the rating.
The agency expects growth in non-oil exports will be robust and the services balance deficit should continue to narrow given strong growth in travel account.