Moody's Upgrades Saudi Arabia's Credit Rating to Positive

Moody's credit rating agency announced today, Monday, that it has upgraded its outlook for the banking sector in Saudi Arabia from stable to positive, while maintaining a stable outlook for the banking sectors in the UAE, Oman, Bahrain, Kuwait, and Qatar. The agency's Senior Vice President, Nitesh Bhognagarwala, stated that "banks in the Gulf Cooperation Council countries benefit from operating conditions supported by high oil prices that boost private consumption and investment in non-hydrocarbon sectors of the economy." He added, "This benefit is particularly evident in Saudi Arabia through its reform plan, government spending, and the Kingdom's ability to support banks in the event of crises, which is reflected in the agency's decision to change its outlook for its banking system from stable to positive."