Ratings agency Fitch on Friday revised the outlook on Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), to "positive" from "stable" following a similar action on the country.
It also affirmed the PIF's rating at "A".
Fitch had cited improvements in Saudi Arabia's balance sheet due to higher oil revenues as reasons for its outlook revision on the country earlier this month.
Moreover, 4 percent of Saudi Aramco’s shares were transferred to the Kingdom’s sovereign wealth fund last February.
Saudi Crown Prince Mohammed bin Salman said the transferred shares will help strengthen the sovereign wealth fund’s solid financial position and strong credit rating in the medium term.
PIF is a sovereign wealth fund and the leading strategic investment arm of Saudi Arabia, promoting the diversification and development of Saudi Arabia's non -oil sector under the government's "Vision 2030" strategic agenda.
PIF's strategic objectives are closely aligned with national economic objectives. The fund's total assets at end-2020 were 47.1 percent of national GDP.
Fitch classifies PIF as a government-related entity under its Government-Related Entities Rating Criteria (GRE).