Prolonged low oil prices, coronavirus crisis could hurt Saudi | ZAWYA MENA Edition:
Saudi Arabia continues to show resilience despite the current challenges posed by the coronavirus outbreak, but it could face some downside if oil prices will remain low for a longer period, analysts have suggested.
US-based international credit ratings agency Standard & Poor’s (S&P) has said it is affirming its A-/A-2 long- and short-term sovereign credit ratings on Saudi Arabia, with a stable outlook.
The latest positive review is due to analysts’ expectation that the current low oil price environment, although affecting fiscal flows, will be counterbalanced by the country’s strong government and external balance sheets.
“But prolonged low oil prices will erode [Saudi Arabia’s] net asset stock and begin to put pressure on the ratings,” S&P said.
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