Saudi economy to bounce back in 2021; S&P affirms A-/A-2 ratings | ZAWYA MENA Edition:
Ratings agency S&P has affirmed Saudi Arabia’s sovereign ratings at A-/A-2 with a stable outlook, as it expects the kingdom to begin to bounce back from the slump caused by the coronavirus pandemic and low oil prices in 2021.
The agency expects the Gulf state’s “relatively strong” government and external balance sheets to continue to support the ratings, even as it acknowledged that the double whammy of low oil prices and the health outbreak is taking a toll on the Saudi economy.
“The Saudi economy has been hit hard by the twin shocks of the pandemic and lower oil prices and demand. Nevertheless, the sovereign’s sizable fiscal and external buffers should help enable it to weather the period,” S&P said.
“The economy should begin to rebound from 2021 on, as global conditions improve,” it added.
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