Fitch Rates Saudi Aramco's Debut Bonds Final 'A+'
10 APR 2019 09:19 AM ET
Fitch Ratings-London-10 April 2019: Fitch Ratings has assigned Saudi Arabian Oil Company's (Saudi Aramco) GMTN programme and debut bonds issued under the programme final 'A+' senior unsecured ratings. The ratings are in line with Saudi Aramco's 'A+' Issuer Default Rating (IDR), which has a Stable Outlook.
Saudi Aramco is the world's largest oil producer and the national oil company of Saudi Arabia (A+/Stable). Its standalone profile corresponds to a rating of 'AA+', which sits at the upper boundary of the Fitch rating spectrum for oil and gas companies, and reflects the company's high production, vast reserves, low production costs and very conservative financial profile.
On the other hand, the company is less integrated into natural gas and downstream than some of its international peers, though this would somewhat improve following the acquisition of Saudi Basic Industries Corp. (SABIC, A+/Stable). Saudi Aramco is also less diversified geographically as its upstream assets are located in a single country.
Saudi Aramco's IDR is capped at 'A+', reflecting strong links between the company and the sovereign, and the influence the state has on the company through regulating the level of production, taxation and dividends. In 2018, Saudi Aramco generated USD224 billion in EBITDA.