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Saudi Arabia Rating Cut by Fitch as Public Finances Worsen

  • Kingdom reported higher than expected budget deficit in 2016
  • Central bank’s net foreign assets fell by $49.5b in 7 months
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Saudi Arabia Cut to A+ from AA- by Fitch

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Saudi Arabia’s credit worthiness was cut one level by Fitch Ratings, which said low oil prices were worsening public and external finances.

Fitch reduced Saudi Arabia’s rating to A+, the fifth-highest investment grade, and changed the outlook to stable from negative, the agency said in a statement on Wednesday. The downgrade reflects “the continued deterioration of public and external balance sheets, the significantly wider than expected fiscal deficit in 2016 and continued doubts about the extent to which the government’s ambitious reform program can be implemented,” Fitch said.