S&P: Outlook on Saudi Arabia revised to positive

Standard & Poor's Ratings Services has revised the outlook on the long-term sovereign credit ratings on the Kingdom of Saudi Arabia from stable to positive. At the same time, the long- and short-term foreign and local currency sovereign credit ratings were affirmed at 'AA-/A-1+'. The transfer & convertibility (T&C) assessment for Saudi Arabia is unchanged at 'AA+'. Saudi Arabia can be upgraded during the next 24 months if economic growth remains strong, since continued growth helps to reduce country's social challenges, including unemployment, and enhance productivity and competitiveness. The ratings are constrained by S&P's view that Saudi Arabia's political institutions are at early stages of development. Moreover, given the Saudi riyal's peg to the US dollar, monetary policy flexibility is viewed as limited.