Fitch affirms the credit rating of Saudi Aramco

Fitch affirms the credit rating of Saudi Aramco
Fitch affirms the credit rating of Saudi Aramco

The credit rating of the country or company reflects its ability to pay its obligations and the risks of investing in it, and this rating is carried out by international agencies specializing in this field, most notably Fitch, Moody’s, and Standard & Poor’s.

The rating agencies set codes for the highest-to-lowest rating levels (DCBA) and within each of them gradient levels, the higher the rating of the country or company, the more attractive it is for investments and has less risk of default or inability to repay.

The rating agencies conduct periodic reviews of the performance of countries and companies in order to assess their credit capabilities and announce the credit rating, whether by confirming it, upgrading it to a higher level or lowering it to lower levels.

Details of the news

Fitch’s statement stated that ’s business is characterized by large-scale production, large reserves and low production costs.

Fitch assumed the price of Brent crude in 2020 at $ 41 a barrel, $ 45 in 2021, $ 50 in 2022, and $ 53 in 2023 and beyond.

A quick background on Aramco

The largest oil producer in the world, which is the company through which Saudi Arabia’s oil production and reserves are managed, was put on the stock exchange in December 2019, according to the company’s website and Fitch’s statement.
The company was established in 1988, but it began its journey as a project for oil exploration and production in 1933, according to the company’s IPO prospectus.

Background on the classification of Saudi Arabia

The agency, Standard & Poor’s, also announced today that it has fixed the credit rating of Saudi Arabia at A- / A-2, which is considered medium creditworthiness, but near high levels, with a stable outlook, according to Al Arabiya.

(Prepared by Abdel Qader Ramadan and Abdel Qader works for the Masrawy Al-Masry website, and he previously worked in several institutions, including the Egyptian Voices website of the Thomson Reuters Foundation, the Egyptian Stock Exchange, and the Egyptian satellite channel CBC)

(Editing by Yasmine Saleh, for contact: [email protected])

Zawya Arabi covers economic news and analysis on the Middle East and the Arabian Gulf, and uses simple Arabic.

© ZAWYA 2020

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