Fitch affirms Saudi Arabia’s rating at ‘A’ with a Stable Outlook

Fitch Ratings (Fitch) has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at “A” with a Stable Outlook, reflecting the country’s financial strength supported by strong fiscal and external balance sheets, including exceptionally high international reserves and low government debt.

With the balance sheet of KSA shrinking due to the fall in oil prices, Fitch expects the government budget deficit to widen to about 12% of Gross Domestic Product in 2020, compared to 4.5% in 2019.  

Fitch has projected oil revenues to decline by 41% in 2020, assuming oil prices to record USD 35 per barrel. In addition, the rating agency also expects the...