S&P affirms Saudi Arabia's ratings on strong financial position

Standard & Poor's Ratings Services said Friday it had affirmed its 'AA-' long-term and 'A-1+' short-term foreign and local currency sovereign credit ratings on the Kingdom of Saudi Arabia.

The outlook is stable. The Transfer & Convertibility (T&C) assessment on Saudi Arabia remains 'AA+'.

"The ratings on Saudi Arabia reflect our view of the government's extremely robust external and fiscal positions. Saudi Arabia currently enjoys an exceptional amount of fiscal flexibility to allow it largely to shield the local economy from the full impact of the global recession, primarily through the pursuit of expansionary fiscal policy," an S&P statement said.