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Fitch assigns Saudi Aramco's first-time IDR at ‘A+’

Fitch assigns Saudi Aramco's first-time IDR at ‘A+’
The world's largest oil company posted $224 billion in EBITDA in 2018

Riyadh – Mubasher: Fitch Ratings has assigned Saudi Arabian Oil Company’s (Saudi Aramco), long-term issuer default rating (IDR) at “A+” with a stable outlook in its first-ever credit ratings.

The world's largest oil company posted $224 billion in earnings before interest, tax, depreciation and amortization (EBITDA) in 2018, the international rating agency said in a statement on Monday.

In 2018, the Saudi state-owned oil giant’s liquids production and total hydrocarbon output averaged 11.6 million and 13.6 million barrels of oil equivalent per day (mmboepd), respectively.

Aramco’s proved liquids reserves and total hydrocarbon reserves were estimated at 227 billion barrels and 257 billion barrels of oil equivalent, respectively, “which implies a reserve life of 52 years, a high and comfortable level by international standards,” according to the statement.

Fitch assigned the oil giant’s standalone profile to a rating of “AA+”, reflecting “the company's high production, vast reserves, low production costs, and very conservative financial profile.”

It is noteworthy Saudi Aramco has appointed banks to arrange its multi-tranche debut dollar bond issue to finance its acquisition of a stake in the Saudi Basic Industries Corporation (SABIC) in a $69.1 billion deal.