RIYADH: Moody’s and Fitch have maintained Saudi Aramco’s excellent financial standing and given the energy giant’s recently launched $10 billion US Commercial Paper Program high ratings. Moody’s confirmed its Aa3 long-term issuer rating with a stable outlook, confirming the company’s capacity to satisfy financial obligations, and gave the energy giant a Prime-1 short-term issuer rating.
Aramco’s strong intrinsic ability to make on-time payments and maintain its financial stability was highlighted by Fitch Ratings, which granted it an F1+ short-term rating. In order to issue notes with maturities of up to 270 days, Aramco has set up a $10 billion US Commercial Paper Program. Corporations issue commercial paper, an unsecured, short-term debt instrument, usually to pay off receivables or fulfill immediate financial requirements, such financing new projects.
“Aramco’s liquidity is outstanding. Over the next 12 to 18 months, the group’s debt maturities, investment commitments, and dividends can all be met using its consolidated cash balance and operating cash flow, according to Moody’s. The company’s cash and cash equivalents were at $69 billion as of September 30.
In addition, the credit rating agency predicted that Aramco will make $180 billion from operations through March 2026, which would be enough to pay $16 billion in debt maturities, $85 billion in capital expenditures, and $140 billion in dividends over that time.
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