S&P launches ratings for Saudi local currency debt

S&P Global Ratings said on Wednesday it is providing GCC National Scale Ratings for entities in Saudi Arabia issuing local currency debt.

Saudi Arabia, the largest economy in the Gulf Cooperation Council (GCC) region, has over the past few years seen a sharp increase in liquidity in its local currency bond market, driven by government debt sales to cover its fiscal deficit.

So-called GCC NSR are designed to be used by parties in the region for capital markets debt, bank loans, and shariah-compliant obligations issued in GCC currencies by entities within and outside the region, S&P said.