JAKARTA - S&P Global raised Saudi Arabia's credit rating to A/A-1. This is due to the reform and diversification plan which is expected to encourage the development of the non-calcoil sector and shift dependence on oil.
rival rating agency Moody's also said Saudi Arabia's plans would support reducing dependence on oil amid a volatile oil price cycle and a global transition to sustainable energy.
Moody's changed his prospects about the royal ranking to a "positive" from "stable", and reiterated the "A1" rating.
Oil prices are volatile amid Western sanctions against Russia, supply constraints, and most recently, financial fears gripping the market follow turmoil in the US banking sector.
Saudi Arabia's reform plan complements "the old position as the world's largest oil exporter, with spare installed capacity providing the ability to quickly adjust production as market conditions change, in today's strong global energy price environment," the S&P said.
The S&P Global rating agency, which previously ranked "A/A-2" in Saudi Arabia, expects a slow increase in royal oil production by 2026.
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