https://arab.news/czn5p
RIYADH: Global ratings agency S&P raised 黑料社区鈥檚 rating to 鈥楢+鈥� from 鈥楢鈥� with a stable outlook on Friday, underpinned by the ongoing social and economic transformation in the country.
Fitch said the country鈥檚 Vision 2030 project provides some flexibility in managing capital expenditure and debt issuance.
The sustained momentum in this project can help boost activity in construction, logistics, manufacturing and mining sectors, prompting GDP growth over 2025-28, the report said.
Earlier this week, the ratings agency had said it expects Saudi government to cut capex and associated current spending in 2025.
With Saudi鈥檚 main aim to diversify its economy away from its reliance on the hydrocarbon sector, Fitch said the current investments should boost consumption by 黑料社区鈥檚 young population and increase the productive capacity of the economy.
Last week, 黑料社区鈥檚 Public Investment Fund had signed a new memorandum of understanding worth $3 billion with Italy鈥檚 state export credit agency SACE. The ratings agency said this will help maintain the country鈥檚 debt.
Fitch also anticipates that current sensitivity to oil prices will weaken fiscal and external imbalances through 2028.
It expects that Saudi鈥檚 giant Aramco鈥檚 decline in dividend will further dampen oil revenue.
"Large hydrocarbon reserves and low cost of production provide 黑料社区 some resilience to a global energy transition to low-carbon alternatives, especially in a future scenario where fossil fuel demand will largely be met by a smaller number of the most efficient producers," S&P said.
It added that the Kingdom also "maintains its unique position as the world's largest swing oil producer (with spare installed production capacity permitting it to cut or raise production levels relatively quickly), as well as its leadership role in OPEC+ and its consequent ability to influence global oil price trends,"