Moody's Affirms Saudi Arabia at Aa3, Stable Outlook

Saudi Arabia's long-term sovereign credit rating has been affirmed at Aa3 with a stable outlook, The affirmation covers both local and foreign currency ratings.

The Aa3 rating is the fourth-highest investment-grade level and is classified as "high grade" on common rating scales. It reaffirms the level Saudi Arabia reached in November 2024, when its sovereign rating was upgraded from A1 to Aa3 with a stable outlook.

Why the rating held steady

The stable outlook reflects the Kingdom's very large foreign exchange reserves and sovereign wealth assets, which underpin its fiscal strength. It also points to a large, wealthy economy backed by significant, low-cost oil production alongside continued non-oil diversification under Vision 2030. Ongoing non-oil GDP growth and moderate projected fiscal deficits of roughly 2–3% of GDP over the medium term were also cited.

A stable outlook generally indicates no anticipated change to the rating over the next one to two years. Elsewhere, the Kingdom currently holds an A+ rating with a stable outlook from Fitch (mid-2026) and an A+ with a stable outlook from S&P (last confirmed in March 2025).

What it means for the community

The rating is an external assessment used for Saudi sovereign borrowing and participation in international capital markets. It does not involve any citizen or resident fees, government portals, or domestic e-services. For residents and businesses, however, a strong and stable sovereign rating can support lower borrowing costs, sustained investment, and continued confidence in the wider economy that drives jobs and services across the Kingdom.

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