Saudi Aramco Gets First Credit Ratings

You could buy a house with credit that good.

Saudi Aramco, the world’s largest oil producer and most profitable company by a large margin, has received its first credit ratings. Given the company’s top-of-the-world profitability, it should be no surprise that their credit ratings are very high.

Saudi Aramco was given high ratings across the board. Fitch gave them an A+, while Moody’s gave the oil giant an A1 rating. These excellent ratings follow an excellent 2018, which saw the company reach new heights both in terms of profitability and global reach. Saudi Aramco’s 2018 earnings blew any and all competition out of the water, while they are also offering their first global bond sales.

Aramco will start meeting international bond investors later this week, while preparing the company to face public international scrutiny for the first time. Because Saudi Aramco is 100% state-owned, Saudi Arabia’s credit rating just went up as well. If the oil giant can sustain its current level of performance, then there should be no significant problems going forward.

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5 years ago