The credit rating agency Moody's has issued its detailed annual credit report on the credit situation of Saudi Arabia, taking into consideration the four main analytical factors that the agency follows in its sovereign rating.
According to Arab Net, the report analyzed the economic strength of Saudi Arabia, the strength of the level of governance and government institutions in it, in addition to its financial strength, its vulnerability to risks, and its ability to manage and mitigate its effects.
In its report, Moody's clarified that Saudi Arabia's credit strengths derive from the strength of its balance sheet, which is supported by moderate debt levels and a huge financial reserve stock, in addition to a large fixed stock of oil reserves with low extraction costs, and a stable and organized financial system that enhances the strength of its sovereign credit file. /p>
The agency expected the Saudi economy to grow at an average rate of about 3.9% during the years from 2022 to 2026, indicating the factors leading to this growth, including the continuation of financial control despite the rise in oil prices, the slowdown in the growth of increased oil production, the continuation of economic diversification projects, in addition to their effective arrival To the stages of implementation and construction in the coming years.
She added that among other factors, the structural economic, legal and social measures and reforms implemented by the government to improve the business environment, which will clearly contribute to increasing the growth of private sector investments.
It is noteworthy that Moody's updated its credit report for Saudi Arabia during June 2022 at A1 with a stable outlook due to the government's continued control of public financial conditions, implementation of structural reforms, as well as its clear efforts towards long-term financial sustainability.
