Saudi rating gets S&P jolt but financial markets barely blink

Dubai

SAUDI Arabia's financial markets barely blinked on Thursday after its debt was downgraded - a sign that a charm offensive by Saudi economic officials, and determined action against speculators, have bought it time in the eyes of many investors.

In the last few weeks, officials of the central bank and ministries of finance, economy and oil have met privately with groups of foreign bankers and analysts to discuss the kingdom's plans to cope with low oil prices.

The officials have reiterated their commitment to the Saudi riyal's peg of 3.75 to the US dollar and described efforts to diversify the economy beyond oil, participants at the meetings told Reuters. The Saudis have been willing to provide lengthy answers to questions on the vulnerability of their economy. They have also stressed that they are prepared to deploy the central bank's huge foreign assets, which totalled US$609 billion at the …