Fitch Affirms Saudi Aramco at ‘A+’; Outlook Stable

Fitch Ratings has affirmed Saudi Arabian Oil Company’s (Saudi Aramco) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘A+’ with Stable Outlooks.

Saudi Aramco’s Long-Term IDRs are constrained at those of its majority shareholder, Saudi Arabia (A+/Stable), given its close links with the sovereign. We assess Saudi Aramco’s Standalone Credit Profile (SCP) at ‘aa+’. The Short-Term IDR of ‘F1+’ is equalised with that of the sovereign.

Saudi Aramco is one of the world’s largest oil producers and Saudi Arabia’s national oil company. Its financial profile benefits from strong pre-dividend free cash flow (FCF) generation and conservative financial policies. Its business profile is characterised by large-scale production, vast reserves, low production costs and expansion into downstream and petrochemicals. Its upstream operations focus on a single country, and compared with global oil and gas majors, its operations have a strong emphasis on crude oil production with increasing natural gas output.