MIDEAST DEBT-Saudi debt underperforms lower-rated sovereigns on Khashoggi fallout | Reuters

MIDEAST DEBT-Saudi debt underperforms lower-rated sovereigns on Khashoggi fallout | Reuters:

Saudi Arabia’s international bonds are underperforming lower-rated emerging market sovereigns, in a sign of how deeply the killing of journalist Jamal Khashoggi has damaged sentiment toward the kingdom.

Rated A1 by Moody’s, A- by S&P and A+ by Fitch, Saudi Arabia has sold $52 billion in U.S. dollar-denominated bonds since its first international issue in 2016, becoming one of the biggest debt issuers in emerging markets.

But since early October, when Khashoggi died inside the Saudi consulate in Istanbul, the kingdom’s bonds have slowly been moving closer to those of triple-B rated governments.