Moody’s rating to PIF enhances fund’s access to global markets: Official

Fahad Al-Saif, Head of Global Capital Finance at PIF

Moody’s rating of the Public Investment Fund (PIF) enhances the fund’s access to the global capital markets, Al Arabiya TV reported, citing Fahad Al-Saif, Head of PIF’s Global Capital Finance Division.

He added that the rating reflects the diversity and quality of the fund's portfolio, which enhances its objectives in line with Vision 2030.

The rating is based on the geographical distribution of the fund's assets, liquidity and other strengths.

Al-Saif added that the rating will help the fund achieve its strategy in the capital markets, which includes access to global markets through the issuance of investment tools, such as sukuk and bonds.

Touching on raising the interest rates globally, the top official said the upcoming issuances will go in line with the fund’s objectives, according to a motivating strategy that is pending the appropriate time and place.

In addition, the fund takes into account stability in the markets, amid the current uncertainty about the interest curve, while ensuring the success of the first issuances in a manner befitting the fund’s position and role.

“It is important for the fund's steps to be stable,” Al-Saif said, stressing that the fund will diversify its sources of financing and access to global markets for the longest possible time so assets can match with liabilities, especially as the fund has medium to long-term projects.

The global markets will accommodate the fund's requests, the top official said.

As regards the debt ratios, he said the fund’s ratio of net debt to assets under management hit -1%, which is the lowest compared to international peers, sovereign funds and other financial institutions.

The full ratio of debt to assets under management does not exceed 2%, and will not exceed 7-9% over the next five to seven years, when calculating the debt acceleration as per the current financial model.

Al-Saif indicated that there is an integrated management of liquidity as well as cash inflows and outflows, confirming that the fund’s expected debt acceleration will not cross the yellow or red lines but will remain at the green level over the coming period.

Moody’s assigned PIF a first-time issuer rating of ‘A1’ and a scorecard indicated rating of ‘Aa2’, with stable outlook, according to data compiled with Argaam.