(Reuters) – Global credit rating agency Moody's (NYSE:) on Friday raised Saudi Arabia's rating to “Aa3” from “A1”, citing the country's efforts to diversify beyond its oil economy.
The world's top oil exporter is investing billions of dollars to achieve its Vision 2030 plan, which focuses on reducing its dependence on oil and spending more on infrastructure to boost industries such as tourism, sports and manufacturing.
Saudi Arabia is also working to attract more outside investment to ensure its ambitious plans stay on track.
Last month, the country's investment minister sought to reassure investors at a conference in Riyadh that Saudi Arabia remains lucrative for investment despite a year marked by regional conflicts.
With lower oil prices and production, government profits have declined. As a result, the kingdom is reconsidering its spending, meaning some Vision 2030 projects will be delayed or reduced, while others would be given higher priority.
“Continued progress will further reduce, over time, Saudi Arabia's exposure to oil market developments and the long-term carbon transition,” Moody's said in a statement.
The rating agency also revised the country's outlook from positive to stable, citing uncertainty over global economic conditions and developments in the oil market.
In September, S&P revised Saudi Arabia's outlook from stable to positive, thanks to strong non-oil growth prospects and economic resilience.
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