VOL. XL

No. 27

7-July-1997

SAUDI ARABIA

Agency Sees Improved Outlook For Saudi Arabia

Moody's Investors Service said on 26 June that it saw an improved outlook for SaudiArabia's foreign currency ceiling of Baa3 (BBB-) - only one notch above investment grade (MEES,5 February 1996) - because of an improvement in the Kingdom's deficit position. The agencysaid that the windfall revenues earned from oil in 1996 had not been matched in thecurrent year or in 1996 by higher spending but had been "used...