The Clap
Moody’s Investors Service has confirmed the ratings of four Saudi companies, including SABIC, STC, Saudi Electricity Company, and Ma’aden.
What
The agency rated SABIC, STC, and Saudi Electricity Company at A1, with a positive outlook. Meanwhile, it affirmed Ma’aden’s rating at Baa1, with a stable outlook.
So What
Moody’s noted that SABIC’s core credit assessment reflects its “strong global position” in the petrochemicals and the fertilizers market and its competitive cost structure.
STC’s rating reflects its leadership in the profitable Saudi telecom market, with a market share of around 71%. The company also boasts strong credit metrics, strong revenue and profitability growth, and excellent liquidity.
The agency stated that Saudi Electricity Company’s rating reflects reduced business risks in its integrated electricity activities and its dominance in the local market. Additionally, it continues to receive government support, including fuel and others.
Finally, Moody’s highlighted Ma’aden’s excellence in producing multiple basic commodities alongside its low-cost operations. It also pointed out its “strategic importance” to the Saudi economy.
