U.S. ratings agency Fitch has downgraded Saudi Arabia and kept its outlook on the oil-producing country as negative as the low price of oil continues to take its toll.
In a note issued Tuesday, Fitch dropped its credit rating from AA to AA-, warning that the low price of oil, which the ratings agency expects to continue for some time, will have “major negative implications for Saudi Arabia’s fiscal and external balances.”
Saudi Arabia is one of the world’s largest oil exporters and, with much of its wealth and government budget dependent on oil revenues, it has been sorely hit by a plunge in oil prices over the last few years – from $114 a barrel in June 2014 to currently around $43 a barrel of benchmark Brent crude.
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