Sizable fiscal buffer and ability to adjust expenditure. Prudent economic and fiscal management. Strong external liquidity, with foreign exchange reserves and liquid external assets currently sufficient to cover around 26 months of current account payments. A narrow economic base and high dependence of government revenues and foreign exchange receipts on volatile oil revenues. Underdeveloped political institutions, and weak transparency and accountability compared with nonregional peers. Limited monetary policy flexibility. The ratings on Saudi Arabia are supported by our view of the government's very strong external and fiscal positions, which have been built over a number of years. By prudent macroeconomic management, the government has reduced its general government debt, generating additional fiscal space for countercyclical policies. The ratings are constrained
