Saudi Arabia’s Debt Rating Raised to Aa3 by Moody’s

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Saudi Arabia’s credit rating was raised by Moody’s Investors Service, which cited “strong” government finances that have withstood volatile oil prices and the global recession.

The kingdom’s foreign- and local-currency government debt ratings were raised one notch to Aa3, the fourth-highest grade, from A1 with a stable outlook, Moody’s said in a statement in Singapore today. It also increased the country’s ceiling for foreign-currency bank deposits to the same level.

“The upgrade was prompted by the continued strong state of government finances, which have largely withstood oil price volatility and the global economic crisis,” Moody’s said.