Latest news with #creditrating
Zawya
2 days ago
- Business
- Zawya
Fitch affirms Saudi Arabia's A+ credit rating with stable outlook
RIYADH — Fitch Ratings has affirmed Saudi Arabia's long-term foreign currency issuer default rating at A+ with a stable outlook, highlighting the Kingdom's strong fiscal position and continued reform momentum. In its latest report, the international rating agency said Saudi Arabia's credit rating reflects the robustness of its financial fundamentals. It noted that key indicators —such as the sovereign net foreign asset position and the debt-to-GDP ratio— are significantly stronger than the averages for countries in the "A" and even "AA" rating categories. Fitch emphasized that the Kingdom holds substantial financial reserves in the form of public sector deposits and other assets, supporting its macroeconomic stability. Looking ahead, the agency projected that Saudi Arabia's sovereign net foreign assets will remain a cornerstone of its credit strength, reaching 35.3% of GDP by 2027. This figure stands well above the average for countries rated 'A,' which is just 3.1% of GDP. Fitch also pointed to the ongoing fiscal reforms undertaken by the Saudi government, aimed at improving budget flexibility and reducing dependence on oil revenues. The agency said these reforms, along with a sustained rise in non-oil revenues, continue to reinforce the Kingdom's credit profile. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
The CMA approves an incentive measure to support credit-rated debt instruments
The Capital Market Authority's (CMA's) Board approved an incentive measure for public offerings of debt instruments, granting priority in the review of public offering applications to issuers or issuances that have obtained a credit rating from a CMA-licensed credit rating agency. This measure will remain in effect until the end of 2026. This initiative comes as part of the CMA's commitment to enhancing the efficiency and transparency of the debt instruments market and supporting its role as a primary source of business financing and economic growth. It also aims to encourage issuers of publicly offered debt instruments to obtain credit ratings to broaden investor participation and strengthen the market's depth and efficiency. This measure forms part of the CMA's strategy to deepen the Saudi capital market and enhance its attractiveness and transparency, in line with the objectives of Saudi Vision 2030 to diversify funding sources and promote financial sustainability. A credit rating is not merely an indicator of the issuer's creditworthiness; rather, it serves as an effective tool enabling investors to make well-informed investment decisions. Through this measure, the CMA aims to build a more mature and stable debt instruments market with a diversified investor base and strengthened confidence among all participants. It also seeks to expand the investor base by enabling them to assess the risks of investing in publicly offered debt instruments, in addition to accelerating the review procedures by the CMA. This measure is expected to enhance companies' access to the debt instruments market to meet their financing needs, stimulate the number of issuances, and increase the attractiveness of offerings to investors. A credit rating facilitates the financial advisor's ability to market the offering, particularly to institutional and qualified investors who rely on such ratings in their investment decisions. A credit rating is defined as a forward-looking opinion on credit risk, which reflects the likelihood of issuers defaulting on their financial obligations in the short or long term, as well as the potential severity of financial losses for creditors in the event of default. Issuers use credit ratings to signal their creditworthiness and attract investors, while investors rely on them to support their credit analysis of issuers and debt instruments.
Bloomberg
4 days ago
- Business
- Bloomberg
Finland's Credit Rating Cut at Fitch as Debt Pile Keeps Growing
Finland suffered its first downgrade in almost a decade after Fitch Ratings cut the Nordic country's credit rating over its failure to rein in ballooning debt. Fitch late on Friday lowered Finland's long-term rating by one level to AA from AA+, the lowest credit grade among the top three rating companies, almost a year after it issued a negative outlook on the debt. Finland's rating at Fitch is now the third-highest, eight levels above junk.
Bloomberg
4 days ago
- Business
- Bloomberg
Turkey Upgraded by Moody's to Ba3 on Improved Policymaking
Turkey got a credit-rating upgrade from Moody's in a boost to policymakers. The nation's rating was raised Friday to Ba3 from B1, still three notches below investment grade, with a stable outlook. Moody's cited central bank policy 'that durably eases inflationary pressures, reduces economic imbalances, and gradually restores local depositor and foreign investor confidence in the Turkish lira.'
Bloomberg
6 days ago
- Business
- Bloomberg
S&P Upgrades Pakistan's Rating on Better Financial Conditions
S&P Global Ratings upgraded Pakistan's credit rating, citing better financial conditions in a boost for the government's efforts to bolster the South Asian country's economy. It upgraded Pakistan to 'B-' from 'CCC+', with a stable outlook on its long-term rating. Other countries that S&P rates similarly are Nigeria, Egypt, Kenya and Ecuador. Most dollar bonds extended gains.
