[ad_1]
Mazen Al-Sudairy, head of research at Al-Rajhi Capital, said that the credit rating agency change “Fitch” to countries, at the rate that started since the global financial crisis in 2008, with the increase of debt to GDP in developed countries at 80%.
He added that developing countries started to be negatively affected, and therefore their classifications, since the trade war between the United States and China in 2018, and that the pressure on them has increased due to the Corona crisis, and that the average debt to GDP has grown to 60%.
The head of research at Al-Rajhi Capital explained in an interview with Al-Arabiya TV today, Monday, that “Saudi Arabia’s situation is very comfortable and the debt-to-GDP ratio is estimated at 34 %, well below the average for developing countries, with the possibility of raising the debt ceiling to 50% “, According to the Kingdom’s financial plan, keep the debt between 31-34%, knowing that the volume of debt is likely to drop from 850 billion to trillion riyals, but the Kingdom is banking on GDP growth.
“The estimated deficit for the coming years is around 225 billion riyals for the year 2023, which constitutes 60% of Saudi Arabia’s financial reserves, and most of it will be financed by debt, which is still low.
However, the high cost of debt is very low and is considered a marginal increase over the rating of the investment.
Al-Sudairy stressed that the Kingdom’s financial position in terms of internal and external reserves and debt is the best among developing countries.
And the credit rating agency “Fitch” confirmed the rating of Kingdom “A” with the outlook change from stable to negative, due to the repercussions of the Corona pandemic and the risks of the second wave, and the developments in oil prices which have called on rating agencies to make around 215 rating adjustments since Last March, around 80% of oil-exporting countries were affected and more than 100 world rankings were revised downwards.
Source link
