This report supplements our research update "Ratings On Saudi Arabia Affirmed at 'AA-/A-1+'; Outlook Positive," published on Dec. 6, 2013. To provide the most current information, we may cite more recent data than that stated in the previous publication. These differences have been determined not to be sufficiently significant to affect the rating and our main conclusions. Sizable fiscal buffer and ability to adjust expenditure. Prudent economic and fiscal management. Strong external liquidity, with government external reserve assets covering about 100% of 2012 GDP. A narrow, albeit expanding, economic base, and high dependence on government revenues and foreign exchange receipts on volatile oil revenues. Underdeveloped political institutions, and weaker transparency and accountability than nonregional peers. Limited monetary policy flexibility. The
