Fitch updates Saudi Electricity’s rating to A to match the Kingdom’s rating

Fitch International has updated Saudi Electricity Company’s credit rating from A- to A with a stable outlook, the same as the Kingdom’s sovereign rating.

He stressed that the new rating is the result of the improvement of the record independent credit card company, against the backdrop of the activation of financial and regulatory reforms in the Saudi electricity sector led by the Ministry of Energy and the participation of relevant government agencies, from November 2020.

The agency indicated that the company’s independent credit rating reflects its large revenues and strong market position in the UK’s electricity generation, transmission and distribution sectors, indicating in its assessment that the improvement in the record company risk derives from organizing its revenues according to the methodology of the model asset structured basis starting from 2021.

For his part, the CEO of Saudi Electricity Company, Ing. Khaled Al-Qunun, said that the company’s credit rating is proof that the reforms improve the company’s financial position and improve its record credit, and therefore its ability to finance its future projects, and enable it to implement its strategy, which aims to help make the electricity sector stronger, more sustainable, reliable and efficient.

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