The international rating agency (Fitch) confirmed, on Monday, Saudi Arabia’s credit rating continuously at “A”, while changing the outlook from “stable” to “negative”, which is the same rating it gave to the giant oil company, Aramco.
The agency stated that the continuation of the rating at the same level comes as a result of the repercussions of the Corona pandemic and the risks of the second wave, and changes in oil prices, which called on credit rating agencies to make about 215 credit rating adjustments since last March.
In a report, she expected Saudi Arabia's government budget deficit to widen to 12.8% of GDP this year, from 4.5% in 2019, in addition to "real GDP shrinking by just over 4% this year."
Fitch also mentioned that the Saudi government debt will reach about 35% of the GDP by the end of 2020, and then increase to 41% by 2022. It also expects the decline in the net sovereign foreign assets of Saudi Arabia to 60% of the GDP.
The agency confirmed that "the continuing weakness in Saudi Arabia's financial and external budgets has accelerated due to the Corona pandemic and the drop in oil prices."
Last September, the international rating agency (Fitch) lowered Saudi Arabia's credit rating from "A +" to "A", referring to the mounting geopolitical and military tensions in the Gulf and the deteriorating financial situation of Riyadh.
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