Fitch Ratings affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at A+ with a stable outlook, highlighting the Kingdom’s strong fiscal position and resilient non-oil economy despite ongoing regional geopolitical developments that are expected to moderate real GDP growth to 0.6% in 2026 before a 2027 rebound.
While international ratings agencies evaluated the fiscal stability of major emerging markets, U.S. steelmakers reported financial gains driven by protective import restrictions and steady domestic demand.
Fitch Affirms Saudi Arabia A+ Credit Rating Amid Regional Pressures
Fitch Ratings affirmed Saudi Arabia’s long-term foreign-currency issuer default rating at “A+” with a stable outlook. The credit rating agency pointed to the Kingdom’s strong fiscal position, substantial financial reserves, and resilient economy as primary pillars supporting the assessment. According to the rating agency’s report, Saudi Arabia maintains government debt and sovereign net foreign assets that remain significantly stronger than the averages for countries rated in the ‘A’ and ‘AA’ categories.
The agency noted that the Kingdom maintained economic resilience despite regional geopolitical developments, bolstered by non-oil economic activity and prudent fiscal management. Furthermore, the banking sector remains sound, characterized by strong capital levels, low non-performing loans, and no requirement for central bank support during recent regional tensions.
GDP Growth Projections and External Balances Through 2027
Fitch projects that Saudi Arabia’s real GDP growth will moderate to 0.6% in 2026 before rebounding in 2027. This anticipated rebound is linked to the normalization of maritime traffic through the Strait of Hormuz, which is expected to support higher oil and petrochemical production. Additional growth drivers include the phased rollout of giga-projects, ongoing spending by the Public Investment Fund, recovering business confidence, and resilient consumer spending.
External buffers remain a central strength for the sovereign. International reserves are projected to remain equivalent to about 11.6 months of current external payments in 2026, placing the Kingdom well above the median for similarly rated sovereigns. Sovereign net foreign assets will continue to serve as a key credit strength over the coming years, complemented by improving governance, stronger institutions, and progressive economic diversification.
Steel Dynamics Posts Profit Jump on Record Shipments and Pricing
In the industrial sector, Steel Dynamics posted a jump in second-quarter profit, benefiting from record steel shipments and stronger pricing dynamics. U.S. steel imports remained near multi-year lows as tariffs and trade restrictions curbed inbound volumes, while manufacturing onshoring, infrastructure investment, and regionalized supply chains supported domestic production.
The Fort Wayne, Indiana-based company reported profit per share of $3.69 for the quarter ended June 30, compared with $2.01 a year earlier. This profit figure included a $16 million charge from asset writedowns related to the planned relocation of an aluminum recycling facility. Quarterly revenue rose by a third to $6.09 billion from a year ago, led by a record 3.7 million tons of steel shipments. Despite the financial gains, Steel Dynamics shares traded down about 2% in extended trading.
Credit Evaluations Across Jurisdictions
Independent of sovereign and industrial updates, credit evaluation activity extended to commercial banking institutions. Fitch Ratings affirmed ForteBank’s long-term foreign- and local-currency issuer default ratings at ‘BB’ with a stable outlook.
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