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Key Rating Drivers Balance Sheet Strength: Saudi Arabia’s ratings reflect its strong fiscal and external balance sheets, with government debt/GDP and sovereign net foreign assets (SNFA) considerably stronger than both the ‘A’ and ‘AA’ medians, and significant fiscal buffers in the form of deposits and other public-sector assets. Structural Weaknesses: Oil dependence, low World Bank Worldwide Governance Indicators and vulnerability to geopolitical shocks remain relative weaknesses. Nonetheless, governance is improving with social and economic reforms and efforts to bolster effectiveness across government institutions. Formidable External Finances: Saudi Arabia has one of the highest reserve coverage ratios among rated sovereigns, at 16.5 months of current external payments. ���������ֳ� forecasts reserves to decline to an average of USD420 billion in 2024-2025, as the current account surplus narrows on the assumption of lower oil revenue, but that outward investments by large institutions such as the Public Investment Fund (PIF) and pension funds moderate. We forecast SNFA to remain above 50% of GDP in 2024-2025, large relative to the ‘A’ median (6% of GDP)