The ratings on the Kingdom of Saudi Arabia are supported by the consolidated general government's favorable fiscal balance and net asset position. The general government balance showed surpluses estimated at 6.7% and 11.8% of GDP in 2003 and 2004, respectively, although these are projected to decline somewhat in the medium term, in line with an expected softening of oil prices. The general government net asset position is expected to remain broadly stable at about 50% of GDP in the medium term. Underlying this, general government gross debt is expected to remain at about 20% of GDP, with future borrowing needs being met largely by the autonomous government institutions, such as the pension funds. The ratings are also supported by strong
