Turn on more accessible mode
Turn off more accessible mode
Home
|
Media Center
|
Careers
Personal
Accounts
Loans
eBanking
NRI Business
Other Services
Corporate
Corporate Banking
International Banking
Syndicated Loans
Trade Finance
Long Term Finance
Working Capital Facilities
SMEs Facility Application – Law (2) – 2021
Investor Relations
Our Strategy
Financials
Financial News
BBK News
Local & Global Market
Shareholder's Queries
Customer Service
Branch Timing
Request for Support
Security Center
FAQ
Tutorials
Contact Us
About Us
About Us
BBK Network
Subsidiaries
Board of Directors
Executive Management
Divisions
Corporate Governance
Our Strategy
Financials
Overview
Quarterly Reports 2010
Annual Report 2009
Annual Report 2008
Annual Report 2007
Annual Report 2006
Annual Report 2005
Annual Report 2004
Annual Report 2003
Annual Report 2001
Previous Quarter Results
Pillar Disclosures
LCR Reports
Financial News
BBK News
Local & Global Market
Shareholder's Queries
Internet Banking
Retail login
Help
|
Alert
What do you want to do?
Select here
Access Retail Internet Banking
Home
Investor Relations
Financial News
FinancialNews
26-03-23
Moody's Upgrades Ratings of Six Saudi Firms, Including Aramco, PIF
(MENAFN) Moody's Investors Service has upgraded the outlook for six firms in Saudi Arabia, including the Public Investment Fund (PIF) and energy giant Aramco, from stable to positive. This follows the country's own positive credit rating upgrade earlier this month. Saudi Basic Industries Corporation (SABIC), Saudi Telecom Co. (stc), the Saudi Power Procurement Co., and the Saudi Electricity Co. also saw their grading increase. The credit rating agency said the upgrade was due to the strength of Saudi Arabia's economy and the credit linkages between the government and the firms.
Moody's report stated that the A1 rating for Aramco reflects its large operational scale, significant downstream integration, and strong financial flexibility due to its low cost structure and low leverage relative to cash flows. These characteristics provide resilience through oil price cycles and mitigate carbon transition risk, which is a material credit consideration for oil and gas companies. SABIC has maintained its strong position in the petrochemical and fertilizer market due to competitively priced domestic feedstock under long-term contracts with Saudi Aramco, which helps mitigate the volatility of its commodity-based activities.
The PIF, which is Saudi Arabia's sovereign wealth fund, was praised for its high-quality investment portfolio, very strong financial profile with low leverage and high interest coverage, and excellent liquidity profile. The fund aims to support the country's economic diversification and transformation under Vision 2030. Moody's ratings upgrade reflects the PIF's strong track record in executing its investment strategy and its ability to manage risks effectively.
Moody's also emphasized that the six firms benefit to varying degrees from international assets and cash flows, but all have significant credit linkages to the Saudi Arabian sovereign and are exposed to the domestic environment, including political, economic, regulatory, and social factors. The rating agency's upgrade of the six firms' outlook from stable to positive is a reflection of Saudi Arabia's improving economic and financial outlook, which is expected to boost the firms' creditworthiness.
MENAFN26032023000045014228ID1105862037
View complete sitemap
Personal
Accounts
Loans
Mortgage
eBanking
ATM
Internet Banking
SMS Banking
NRI Business
Other Services
Corporate
Corporate Banking
International Banking
Syndicated Loans
Trade Finance
Long Term Finance
Working Capital Facilities
SMEs Facility Application – Law (2) – 2021
Investor Relations
Our Strategy
Financials
LCR Reports
Financial News
BBK News
Local & Global Market
Shareholder's Queries
Customer Service
Branch Timing
Request for Support
Security Center
FAQ
BBK tariffs
Tutorials
Customer Protection
Contact Us
About Us
About Us
BBK Network
Subsidiaries
Board of Directors
Executive Management
Divisions
Corporate Governance
Follow us