Fitch Confirmed Saudi Aramco's Rating At 'A' With A Stable Outlook
The international rating Agency Fitch confirmed the long-term Issuer default rating (IDR) of the state oil and gas company of Saudi Arabia, Saudi Aramco, at the "A" level with a stable outlook, the agency said in a release.
"Saudi Aramco is the largest oil producer in the world. Its business profile is characterized by large-scale production, huge reserves, and low production costs," the agency points out.
According to Fitch, by the end of next year, the ratio of net cash leverage from operating activities (FFO) of Saudi Aramco will be 1.0 x. At the same time, the agency believes that the debt burden will increase, but will remain within the limits corresponding to the current rating.
In June, Saudi Aramco acquired 70% of the petrochemical Corporation Saudi Basic Industries Corp (SABIC), which, according to Fitch, is a positive factor for the business, though the main profit of the company will still bring oil production.
Saudi Aramco is the national oil company of Saudi Arabia, founded in 1933. The headquarters is located in Dhahran. The company controls almost all of the country's oil production capacity.
Saudi Aramco's 'A' Long-Term IDR is constrained by that of its majority shareholder Saudi Arabia (A/Stable), given strong links between the company and the sovereign, in line with Fitch's Government-Related Entities (GRE) and Parent and Subsidiary Linkage (PSL) Rating Criteria.