Saudi Arabia ‘strong enough’ to withstand lower oil prices: Moody’s

Saudi Arabia’s strong financial assets will enable the kingdom to withstand the sharp decline in oil prices for at least two years, according to a report issued by Moody's.

The report confirmed that the kingdom’s strong credit standing has allowed it to cope with the fluctuations of the global financial markets, as well as the region’s political unrest.

However, Moody's said tumbling oil prices— which the agency expects will reach about $80 a barrel in 2015— will erode the kingdom's fiscal surplus and lead to a budget deficit by next year.