• Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
Saudi Business News
Tuesday, May 13
19:33
42 °c
Riyadh
No Result
View All Result
Saudi Business News
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line
No Result
View All Result
Saudi Business News
No Result
View All Result

HomeFinanceSaudi Electricity Co. Soars to ‘A+’ Rating by Fitch

Saudi Electricity Co. Soars to ‘A+’ Rating by Fitch

Credit Boost Reflects Solid State Backing and Vision

May 26, 2024
in Finance
Reading Time: 1 min read
152
SHARES
1.9k
VIEWS
Share on FacebookShare on XShare on LinkedInShare on Telegram

Fitch Ratings has elevated the credit status of Saudi Electricity Co. by upgrading its issuer default ratings to ‘A+’ from ‘A’, highlighting the strong support from the Saudi government.

Simultaneously, the company’s national long-term rating has been advanced to ‘AAA’, up from ‘AA’, paired with a stable outlook. This upgrade is attributed to the organization’s robust standing within the electricity sector of Saudi Arabia.

RelatedPosts

Bank Guarantee Reform Boosts Saudi Financial Sector

Saudi Arabia Leads Islamic Finance Growth in 2025

Saudi Stock Market Gains Driven by Key Sectors

Fitch acknowledges that while Saudi Electricity Co.’s independent credit profile is rated at ‘bbb’, signifying a satisfactory capacity to meet financial commitments, the company’s ratings have been aligned with those of Saudi Arabia due to strengthened connections with the state under revised criteria for government-related entities.

An ‘A+’ rating signifies a low probability of default and a robust capability to fulfill financial commitments, according to the criteria set by the American rating agency.

CEO Khaled bin Hamad Al-Gnoon responded to the upgrade by emphasizing the company’s dedication to strengthening the reliability and efficiency of the national electrical grid. Al-Gnoon also highlighted the alignment with the Ministry of Energy and Saudi Arabia’s decarbonization agenda, praising the firm’s financial health and governance excellence.

The company attributes this rating upgrade to its sound decision-making process, consistent financial profile, and unwavering governmental support. Acknowledgment of the conversion of substantial liabilities to equity-like instruments, leverage flexibility, and reliable cash flow also played a role.

Recently, Saudi Electricity Co. reported a substantial net profit increase for the first quarter of 2024, marking an 87 percent rise from the corresponding period in the previous year, reflecting its strong financial performance.

Tags: Credit UpgradeFitch Ratingsgovernment supportSaudi economySaudi Electricity Co.
Share61Tweet38Share11Share

© 2025 Copyright, Saudi Business News

No Result
View All Result
  • Home
  • Business
  • Economy
  • Finance
  • Investment
    • PIF
  • Technology
  • Real Estate
  • Events
  • Vision 2030
  • Projects
    • NEOM
    • Qiddiya
    • The Line

© 2025 Copyright, Saudi Business News

Go to mobile version