Moody’s downgrades Saudi Arabia

imageSaudi Arabia’s credit rating has been downgraded by Moody’s ratings agency. The US-based firm said the downgrade reflects their view that lower oil prices have led to a “material deterioration” in Saudi Arabia’s credit profile. Moody’s downgraded Saudi Arabia’s long-term issuer rating by one notch to A1. It also lowered the Kingdom’s long-term foreign-currency bond and deposit ceilings to A1 from Aa3. Saudi Arabia is the world’s largest oil exporter. The ratings agency said the drop in oil prices from their mid-2014 peaks has affected the Kingdom’s economy and the government’s finances in a negative way, and this affects both external accounts and reserve buffers. “While the government has ambitious and comprehensive plans to address the shock by diversifying its economic and fiscal base, those plans are at an early stage of development and their impact remains uncertain,” Moody’s said. Read Article