Standard & Poor's and Fitch issue credit rating updates for Saudi Arabia and Tunisia

Standard & Poor's has affirmed Saudi Arabia's long-term credit rating at A+ with a stable outlook. The agency noted that the rating reflects the Kingdom's ability to manage geopolitical tensions in the Middle East through its diverse energy export infrastructure and significant oil storage and refining capacities. The stable outlook is supported by continued momentum in non-oil growth and the government's ability to reorder investment spending priorities under Vision 2030.

Economic projections suggest real GDP may decrease by 0.9% in 2026 before rising by approximately 8.2% in 2027 due to increased oil production. The non-oil sector, including government activities, now accounts for about 70% of total GDP, up from 65% in 2018. Additionally, foreign exchange reserves have reached their highest levels since early 2020.

In Tunisia, Fitch Ratings has affirmed the country's long-term sovereign credit rating at B- with a stable outlook. This decision reflects stable sovereign risk regarding Tunisia's ability to service its debt, though it does not necessarily indicate improving economic indicators. Financial analysts note that while Tunisia has met its obligations, it faces increasing pressure on the real economy, investment, and the current account.

Concerns remain regarding a budget deficit that could reach 6.4% of GDP and public debt approaching 85% of GDP. Fitch expects a potential decrease in the deficit and debt ratio in coming years, contingent on domestic reforms and global oil prices. By 2027, Tunisia is expected to stop direct financing from the Central Bank, shifting toward increased domestic borrowing from Tunisian banks, which may impact investment financing.