Oil prices making an impact
On Friday, S&P downgraded credit rating and citing a pronounced negative swing in the fiscal balance sheet. Today, Moody’s said that the Saudi government has cut back on expenditures, and that without such budget cuts and/or non-oil revenue increases, the Kingdom’s creditworthiness will be affected. The rating agency added that volatile oil prices continue to when the government’s balance sheet and that they see a deficit of 17% of GDP.