Saudi Pressure Points Shown in Four Charts After S&P Rating Cut
- Interbank lending rates, credit-default swaps rising
- Government-linked bonds lag region as stocks retreat
This article is for subscribers only.
The pressure is building in Saudi Arabian markets.
Interbank lending rates are creeping up, bonds are sliding and the cost of insuring against a debt default is rising as the Arab world’s biggest economy adjusts to a collapse in the price of oil, which generates at least 80 percent of government revenue. Standard & Poor’s lowered the country’s credit rating last week, citing a budget deficit that it forecasts will increase to 16 percent of gross domestic product this year.