Fitch Ratings affirmed Saudi Arabia's Long-term local and foreign currency Issuer Default ratings (IDRs) at ‘AA-', both with stable outlooks. The Country Ceiling is affirmed at ‘AA' and the Short-term foreign currency IDR at ‘F1+'. “Saudi Arabia's strengths have come to the fore amid the global slowdown and financial crisis,” said Charles Seville, director in Fitch's Sovereign team on Tuesday. “The financing flexibility offered by the government's balance sheet - built up by saving past oil revenues - has enabled it to forge ahead with spending plans without raising borrowing.” A strong government balance sheet is one of the chief supports to the ratings. Sovereign net foreign assets were estimated at 132 percent of GDP at end-2009 and are conservatively-managed and valued. Consolidated general government debt was just 6 percent of GDP. In absolute terms, net foreign assets are second only to Japan's in the ‘AA' category. They are also among the strongest in relation to GDP and current account receipts, but remain weaker compared to other major Gulf Cooperation Council oil producers.
