Moody’s downgrades Saudi rating, says 2030 plan could upgrade ranking
GCC countries suffered another cut to their credit rating as Moody’s Investors Service downgraded them because of the slump in oil prices
Saudi Arabia and other GCC countries suffered another cut to their credit rating on Saturday as Moody’s Investors Service downgraded the kingdom along with Bahrain and Oman because of the slump in oil prices.
Moody’s lowered its long-term rating for Saudi Arabia to A1, which denotes low credit risk, down from Aa3, saying lower energy prices “have led to a material deterioration” in the profile of the top oil exporter.
But ambitious plans announced by Riyadh to diversify its economy could lead to a credit ratings upgrade in the future, Moody’s said.
Moody’s lowered its rating for Bahrain to Ba2, which indicates substantial credit risk, from Ba1, with a negative outlook.
It warned that the country’s government debt burden was expected “to deteriorate significantly over the coming two to three years.”
Moody’s lowered its rating for Oman to Baa1, which denotes moderate credit risk, from A3, warning the sultanate was “vulnerable to an oil price shock” given its heavy reliance on energy revenues.