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Dropping Oil Prices Lead to Drop in Saudi Credit Rating

Saudi Arabia saw its credit rating downgraded Saturday by Moody’s Investors Service because of the slump in world oil prices. In a statement, Moody’s said the downgrade reflects its view that “lower oil prices have led to a material deterioration in Saudi Arabia's credit profile. A combination of lower growth, higher debt levels, and smaller domestic and external buffers leave the Kingdom less well positioned to weather future shocks.” Moody’s noted that Saudi Arabia’s recently...

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