Fitch Affirms Saudi Arabia’s ‘A+’ Credit Rating with Stable Outlook

Global credit ratings agency Fitch Ratings has affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating at ‘A+’ with a Stable Outlook, citing the Kingdom’s strong fiscal position and economic resilience.

In its latest report, Fitch highlighted Saudi Arabia’s robust external balance sheets, noting that the country’s government debt-to-GDP ratio and sovereign net foreign assets remain significantly stronger than the median levels for both ‘A’ and ‘AA’ rated economies. The agency also pointed to the Kingdom’s substantial fiscal buffers, including large deposits and public sector assets, as key factors supporting the rating.

Saudi Arabia’s ambitious economic transformation program, Vision 2030, was also recognized for its role in diversifying economic activity and reducing the nation’s dependence on oil. “The reform program has contributed to making Saudi Arabia one of the strongest economies in the Middle East,” Fitch stated.

Looking ahead, the agency expects a positive economic outlook, predicting a rebound in headline economic growth in 2025 following a period of slowed expansion due to oil production cuts agreed upon by OPEC+.

Additionally, Fitch noted that geopolitical risks facing Saudi Arabia have eased in recent months. “Saudi Arabia remains exposed to regional geopolitical tensions, but these risks have lessened recently, given the dynamics of ongoing conflicts,” the agency reported.

The rating affirmation reinforces investor confidence in Saudi Arabia’s economic stability and long-term growth prospects as the Kingdom continues its efforts to modernize its economy and attract global investment.