Economics
Saudi Outlook Cut to Negative at Moody’s as Reserves Tumble
- Kingdom’s issuer rating affirmed at fifth-highest grade
- Fiscal deficit will widen to more than 12% of GDP in 2020
The Kingdom Tower, center rear, stands in Riyadh, Saudi Arabia.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Saudi Arabia’s outlook was cut to negative from stable by Moody’s Investors Service as the crash in oil prices and the pandemic sent the kingdom’s reserves plunging to their lowest in almost a decade.
The rating company kept the sovereign at A1, its fifth-highest grade, according to a statement on Friday. Moody’s last downgraded Saudi Arabia in 2016, and has its assessment above those of Fitch Ratings and S&P Global Ratings.