RIYADH: In recognition of the oil giant’s solid financial position and vital role in the Saudi economy, Fitch Ratings has confirmed Saudi Aramco’s long-term issuer default ratings at “A+” for both international and local currencies, with a stable outlook.
Although it is capped by the rating of its largest shareholder, the Saudi government, which controls 81.48 percent of the firm, the grade is supported by Aramco’s strong financial profile. An extra 16 percent is held by the Public Investment Fund. Fitch claims that this arrangement affects Aramco’s ratings because of the government’s substantial ownership and influence.
The confirmation follows Aramco’s impressive 2023 performance, in which it produced 12.8 million barrels of oil equivalent per day from hydrocarbons and an average of 10.7 million barrels of liquids per day. Major international competitors Shell, TotalEnergies, and BP were all surpassed by this result.
Fitch stated in its statement that, in accordance with Fitch’s Government-Related Entities Rating Criteria, Saudi Arabia’s rating limits Aramco’s rating. This is because the government has significant control over Aramco, especially when it comes to regulating output levels in line with OPEC+ agreements.
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