Moody’s upgrades PIF, 5 Saudi firms’ ratings to Aa3

Logo of Public Investment Fund (PIF)

Moody's Investors Services upgraded its outlook on five Saudi entities, namely Public Investment Fund (PIF), Saudi Aramco, Saudi Basic Industries Corp. (SABIC), Saudi Electricity Co. (SEC), stc and Saudi Power Procurement Co. (SPPC) from “A1” to “Aa3”. The future outlook was also changed from “Positive” to “Stable”.

The credit rating agency said in a statement that this upgrade was a direct result of the recent sovereign rating upgrade of Saudi Arabia to “Aa3” from “A1”, with a stable outlook.

Moody’s highlighted that this reflects the credit links between the Saudi government and each of the six entities. While many of these companies benefit to varying degrees from international assets and cash flows, all of them have significant credit ties to the government and are exposed to the domestic environment, including political, economic, regulatory, and social factors.

According to data available with Argaam, Moody’s recently upgraded its credit rating for Saudi Arabia’s local and foreign currencies to Aa3, with a stable outlook.