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Saudi Aramco gets first credit ratings ahead of bond debut

Credit: Reuters Studio
Published on April 1, 2019 - Duration: 01:13s

Saudi Aramco gets first credit ratings ahead of bond debut

Saudi Aramco, the world's top oil producer, has been rated A+ by Fitch and A1 by Moody's in its first-ever credit ratings, ahead of the state oil giant's first global bond sale and following 2018 earnings that dwarfed those of international oil majors.

Ciara Lee reports

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Saudi Aramco gets first credit ratings ahead of bond debut

Saudi Aramco - the world's top oil producer - has had its first ever credit ratings And it's come top of the class - rated A+ by Fitch and A1 by Moody's.

It comes ahead of the first global bond sale from the state oil giant and follows 2018 earnings that dwarfed those of international oil majors.

Aramco will start meeting international bond investors this week for its debut in the international capital markets opening its books to investor scrutiny for the first time.

Given Aramco is fully state owned, its ratings are in line with that of Saudi Arabia.

Aramco generated earnings before interest, tax and depreciation of $224 billion in 2018 charging past ExxonMobil, the world's largest listed oil firm.

The debt sale will help it finance its acquisition of a stake in SABIC, the world's fourth-largest petrochemicals maker.

Last week, Aramco said it would buy the 70 percent stake from the kingdom's wealth fund for $69.1 billion - one of the biggest deals in the global chemical industry.

According to Moody's, Aramco has $46.8 billion of bank facilities, of which about $25.5 billion remains available.

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