Mubasher TV
Contact Us Advertising   العربية

Fitch affirms Saudi Electricity at 'AA-', Outlook Stable

Fitch affirms Saudi Electricity at 'AA-', Outlook Stable
Photo Credit: Arabianeye-Reuters
SAUDI ELECTRICITY
5110
-0.56% 17.70 -0.10

Riyadh-Mubasher: Fitch Ratings has affirmed Saudi Electricity Company’s (SEC) credit rating at 'AA-', with Stable Outlook.

The agency has also affirmed SEC’s outstanding Sukuk issues, including issues under Saudi Electricity Global Sukuk Company, Saudi Electricity Global Sukuk Company 2, and Saudi Electricity Global Sukuk Company 3, at 'AA'.

The affirmation reflects the continued strength of SEC’s links with Saudi Arabia (KSA; AA/Stable).

Historically, state financial support has been strong and we assume this will continue.

At the end of September 2014, SEC had SAR 69 billion ($18 billion) available under the SAR 130.5 billion ($35 billion) of soft loans provided by KSA, which are interest free and drawn down in installments.

SEC is drawing down the soft loans of SAR 51 billion ($14 billion) announced in June 2011 and SAR 49.4 billion ($13 billion) announced in March 2014 by the KSA to partially finance its capital projects.

Fitch expects revenue growth to range between 4% and 5%, mainly driven by population growth. In FY13, SEC added 444,425 (6.1%) customers to its network.