S&P Upgrades Saudi Arabia Outlook, Flags Possible Ratings Upgrade
The international rating agency Standard & Poor's (S&P) has upgraded its outlook for Saudi Arabia from "negative" to "stable", hinting at a potential upgrade of the country's credit rating in the future. This announcement serves as an important signal for investors and participants in global financial markets, especially considering the new economic data and the effectiveness of the crisis management measures implemented in the country.
S&P noted that positive changes in Saudi Arabia's economy have largely been driven by rising oil prices and the successful execution of the economic diversification program "Vision 2030", which aims to reduce reliance on hydrocarbons and support other sectors of the economy. The agency highlighted that improvements in public finances and external debt sustainability have also contributed to the positive outlook.
Additionally, S&P emphasized that the agency will closely monitor economic indicators and the political situation in the kingdom. Any potential positive actions by the agency may occur depending on the outcomes of development programs and the overall state of the economy.
It is important to note that recessions in other major economies may impact Saudi Arabia's export revenues and, consequently, its credit rating.
Thus, S&P's decision underscores confidence in Saudi Arabia's ability to adapt to changing conditions in global markets and continue implementing strategies aimed at sustainable growth and development.
