The government of Saudi Arabia has very strong external and fiscal positions and has reduced its general government debt through prudent macroeconomic management. We are affirming our 'AA-/A-1+' long- and short-term foreign and local currency sovereign credit ratings on Saudi Arabia. The stable outlook on the long-term rating balances our view of the country's exceptionally strong fiscal balance sheet and net external asset position against its underdeveloped public institutions, high reliance on oil windfalls, and challenging demographic profile. On May 7, 2012, Standard&Poor's Ratings Services affirmed its long- and short-term foreign and local currency sovereign credit ratings on the Kingdom of Saudi Arabia at 'AA-/A-1+'. The outlook is stable. The transfer&convertibility (T&C) assessment for Saudi Arabia
