Fitch, Moody’s assign Saudi Aramco sukuk 'A(EXP)', (P)A1 ratings

Logo of Saudi Aramco

Saudi Arabian Oil Co.’s (Saudi Aramco) new “Trust Certificate Issuance Program” was assigned an expected rating of 'A(EXP)' from Fitch Ratings, and (P)A1 rating from Moody’s.

Fitch said in a recent report that the expected rating is in line with Saudi Aramco's Long-Term Issuer Default Rating (IDR) and senior unsecured rating of 'A'.

The assignment of the final rating is contingent on the successful issuance of the sukuk and final documents materially conforming to information already reviewed.

On the other hand, Moody’s pointed out that Saudi Aramco's ‘A1’ rating reflected its strong financial profile with very low production costs and modest debt in its capital structure.

The company has excellent liquidity with consolidated cash balances and operational cash flows more than sufficient to meet group debt maturities, investment commitments and dividends over the next 12 to 18 months.

Saudi Aramco had $54.1 billion of cash and cash equivalents relative to $143.7 billion of total reported group debt, of which $17.7 billion is due within the next 12 months, Moody’s clarified.

According to data compiled by Argaam, Saudi Aramco announced today, June 7, 2021, the issuance of Shariah-compliant international trust certificates under its “Trust Certificate Issuance Program”.