S&P Global Upgrades Credit Rating of Saudi Arabia to A+ with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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S&P Global Upgrades Credit Rating of Saudi Arabia to A+ with Stable Outlook

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

Credit rating agency S&P Global upgraded Saudi Arabia’s local and foreign currency credit rating to A+ with a stable outlook.

In its report, the agency stated that the upgrade with a stable outlook reflects the Kingdom's continued progress in economic diversification, sustained growth of the non-oil sector, and development of the local capital market.

These factors help offset the risks associated with rising external sovereign debt, which is being strategically invested to achieve the objectives of Saudi Vision 2030 while managing debt servicing costs.

The agency highlights the Kingdom's measures to spur investments that will support non-oil growth prospects and economic resiliency over the medium term.

As a result, S&P forecasts real gross domestic product (GDP) growth to average 4% over 2025-2028.

The agency expects the Kingdom’s fiscal deficit to average 4.2% of GDP during the same period, driven by transformational spending aimed at accelerating economic diversification.

Furthermore, it is expected that the Kingdom will maintain its comfortable net asset position. Saudi Arabia has seen multiple credit rating upgrades from global rating agencies over the past few years.

These advancements reflect the Kingdom's improved institutional strength and ongoing implementation of structural reforms. They are enabling a successful economic transformation and unprecedented economic diversification in the context of fiscal sustainability and enhanced financial planning efficiency that will continue to support its strong and resilient fiscal position.



French PM Opposes Calls to Go back to 62 as Retirement Age

 France's Prime Minister Francois Bayrou visits the plant of French rolling stock manufacturer Alstom in Aytre near La Rochelle, western France, on March 14, 2025. (AFP)
France's Prime Minister Francois Bayrou visits the plant of French rolling stock manufacturer Alstom in Aytre near La Rochelle, western France, on March 14, 2025. (AFP)
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French PM Opposes Calls to Go back to 62 as Retirement Age

 France's Prime Minister Francois Bayrou visits the plant of French rolling stock manufacturer Alstom in Aytre near La Rochelle, western France, on March 14, 2025. (AFP)
France's Prime Minister Francois Bayrou visits the plant of French rolling stock manufacturer Alstom in Aytre near La Rochelle, western France, on March 14, 2025. (AFP)

Prime Minister Francois Bayrou on Sunday rejected the idea of reverting to 62 as the basic retirement age in France, appearing to narrow options for unions and employers negotiating changes to an unpopular pension reform.

Bayrou, who heads a fragile minority government, agreed to reopen discussion of the 2023 reform, including the contested measure to raise the retirement age from 62 to 64 years, to help secure tacit support in parliament from opposition Socialists.

He tasked union and company representatives to discuss changes, saying all options were on the table provided proposals would ensure a funding deficit would be plugged.

Asked in an interview on France Inter radio if it was possible to go back to retirement at 62, he said, "No."

"The representatives in the social conference know very well what the numerical situation is and which I asked the Court of Accounts to set out," Bayrou said, referring to a report by France's audit office projecting future deficits even after the 2023 reform.

At the same time, he did not see retirement age as the only path for reforming the pension system, he said.

If unions and employers fail to agree to proposals, the government plans to proceed with implementing the 2023 reform.