RIYADH:
Saudi Arabia suffered another cut to its 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. “A combination of lower growth, higher debt levels and smaller domestic and external buffers leave the kingdom less well positioned to weather future shocks.” But ambitious plans announced by Riyadh to diversify its economy could lead to a credit ratings upgrade in the future,” it added. Fellow agencies, Standard and Poor’s and Fitch have also downgraded Saudi Arabia in recent months.
Published in The Express Tribune, May 15th, 2016.
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