Moody’s rating of Saudi domestic sukuk issuance program reflects strength, economic resilience: Al-Jadaan

“It also demonstrates the efficiency of structural reforms and financial and economic policies aimed at boosting economic growth, sustainability and diversification in order to achieve comprehensive development,” Al-Jadaan added.

The rating underscored the immense trust in the Saudi economic and finance sectors.

Moreover, the government will continue to push ahead to achieve the goals of Vision 2030 and empower the local financial sector to transform it into a global hub by 2030, he vowed.

Elsewhere, National Debt Management Center CEO, Fahad Al-Saif, said that the move by Moody’s showed the depth of the local debt market by providing a risk-free yield curve.

The introduction of the national scale rating is expected to further attract foreign investors in the local debt capital market, he said.

Credit rating reports for domestic issuances are opinions on the creditworthiness of public and private issuers as well as financial obligations related to other issuers within a country. 

The credit rating of domestic issuances deals with the relative risk within a country (relative to the sovereign issuance rating), while the credit rating of international sukuk sales is based on a cross-country comparison.

Moody's assigned a provisional (P)A1 senior unsecured MTN global scale rating (GSR) and Aaa.sa senior unsecured national scale rating (NSR) to the Saudi government's domestic SAR-denominated sukuk issuance program.

Moody's also assigned a A1/Aaa.sa senior unsecured GSR/NSR to the most recent sukuk instrument issued under that program.