Moody upgrades Saudi Arabia’s credit rating, citing diligent fiscal management

Moody’s upgraded Saudi Arabia’s sovereign credit rating to Aa3, citing progress in economic diversification and prudent fiscal management. The agency’s fourth-highest grade reflects confidence in the kingdom’s ability to sustain forecasted deficits of 2%-3% per year through 2030, supported by a low debt-to-GDP ratio.

Government debt is projected to rise to 35% of GDP by 2030, below peers with similar ratings. Saudi Arabia is investing heavily in sectors such as tourism, mining, petrochemicals, and electric-vehicle manufacturing. Moody’s said Riyadh’s plan to prioritize spending amid material and labor constraints may slow implementation of some projects but is “credit positive.”