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Moody's Investors Service affirms credit ratings for 4 major Saudi companies

Moody's Investors Service affirms credit ratings for 4 major Saudi companies
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SAUDI ELECTRICITY
5110
-0.56% 17.70 -0.10
STC
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-1.31% 41.40 -0.55

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Riyadh – Mubasher: Moody's Investors Service has affirmed the 'A1' ratings of Saudi Basic Industries Corporation (SABIC), Saudi Telecom Company (stc) and Saudi Electricity Company (SEC), and the 'Baa1' rating of Saudi Arabian Mining Company (Ma'aden).

The global credit rating agency also maintained its positive outlook for SABIC, stc, and SEC, according to a press release.

Moody's kept the stable for Ma'aden, affirming its 'A3.sa' national scale rating (NSR). 

The outlooks on SABIC, stc and SEC reflect strategic ties to dominant state shareholders like oil behemoth Saudi Arabian Oil Company (Aramco). In contrast, Ma'aden's stable outlook was an indicator of the company’s prudent fiscal discipline.

The recent rating update follows Moody's expanding methodology for government-related issuers to capture indirect state control and strategic importance.

The ratings affirm Moody's view that dominant state shareholders can exert a strong influence over strategically important firms.

SABIC turned to net losses after Zakat and tax worth SAR 1.04 billion in the first nine months (9M) of 2023, compared to net profits valued at SAR 16.24 billion in 9M-22.

stc reported net profits of SAR 13.29 billion in 2023, up 9.23% year-on-year (YoY) from SAR 12.17 billion.

Meanwhile, sec posted a 22.80% YoY lower net profit after Zakat and tax to SAR 10.34 billion during 9M-2023, versus SAR 13.39 billion.

Ma’aden’ net profits plummeted 83.07% YoY to SAR 1.57 billion in 2023 from SAR 9.31 billion.