We assess that the institutional settings for Saudi Arabia have strengthened in the context of socioeconomic reforms and transformation under Vision 2030 and are now in line with most peers rated in the 'A' category. Government measures to spur investment and consumption will support strong non-oil growth prospects over the medium term. We expect wider fiscal imbalances partly because of lower oil revenue; however, our base case assumes that the recalibration of some large infrastructure spending should maintain a strong sovereign balance sheet and external position for the country. We therefore raised our unsolicited long-term sovereign credit rating on Saudi Arabia to 'A+' and affirmed the 'A-1' short-term rating. The outlook is stable. On March 14, 2025, S&P Global Ratings
