Bloomberg/Simon Dawson

Ratings

A+ ratings affirmed for Saudi Aramco debut bond

  • share this article

The rating agency said that Saudi Aramco’s standalone profile corresponds to a rating of AA+, reflecting the company's high production, vast reserves as well as low production costs and very conservative financial profile.

Thursday 11, April 2019 BY KUDAKWASHE MUZORIWA

Fitch Ratings has assigned its final A+ senior unsecured ratings for Saudi Aramco global medium term note (GMTN) programme and debut bonds issued under the programme, in line with the oil giant’s A+ issuer default rating (IDR) which has a stable outlook.

The rating agency said that Aramco’s financial profile is very conservative, at the end of 2018 its cash balances exceeded balance-sheet debt. Fitch projected that the state-owned giant’s leverage will remain low, even after the recently announced acquisition of SABIC, which is expected to be predominantly funded from the company's free cash flow.

Additionally, Saudi Aramco's acquisition of the Public Investment Fund’s 70 per cent stake in SABIC, is said to fit into the company's vertical integration strategy and expected to help diversify earnings while having a limited impact on Aramco leverage. 

TAGS : Saudi Aramco, debut bond sale, Fitch Ratings

print this article