Saudi Arabia: Moody’s, the global credit rating agency, has affirmed Saudi Arabia’s credit rating at ‘A1’ with positive outlook, reported the Saudi Press Agency on Saturday.

The rating affirmation is based on Moody’s assessment of the government’s significant progress achieved in implementing broad-based reform agenda since 2016.

It is also based on the track record of macroeconomic and fiscal policy effectiveness that will support the sustainability of the economic diversification.

Furthermore, Moody’s expects the continued implementation of large diversification projects in Saudi Arabia will support nonhydrocarbon real GDP growth as they are designed to be modular and commercialized in phases.

The international credit rating agency further mentioned that the positive outlook is a reflection of the reforms and investments in various nonoil sectors that will, over time, lead to a material decline in the Kingdom’s economic and fiscal reliance on hydrocarbons.

Moreover, the agency touched on the country’s large economy, improving institutions and policy effectiveness, robust balance sheet and large foreign currency buffers.