Leading global credit rating agency, US-based Moody’s has given a positive outlook to Saudi Arabia’s domestic Sukuk issuance program.
Earlier this week, in its latest report the agency provided a AAA rating that views the Riyal-denominated Islamic bond program as an investment that has the highest grade for the top quality issuer with the lowest risk.
Expressing his happiness on the positive outlook and validation given by the rating agency, Saudi Finance Minister Mohammed Al-Jadaan remarked that “The rating reflects the strength of the Kingdom’s economy and ability to confront global economic challenges, especially amid the current extraordinary crises and circumstances endured by the world.”
Saudi Finance Minister further added, “It also demonstrates the efficiency of structural reforms and financial and economic policies aimed at boosting economic growth, sustainability, and diversification in order to achieve comprehensive development.”
Mr. Al-Jadaan insisted that the rating underlined the great trust in the Saudi economic and finance sectors assuring that the Kingdom will continue to progress ahead to achieve the goals of Vision of 2030 and empower the local financial sector to transform it into a global hub by 2030.
While the credit rating of local issuances is awarded only by considering the relative risk within a country (relative to the Sovereign issuance rating), International Sukuks are rated on the basis of a cross-country comparison.
Moody’s Rating
Moody’s rating managed by Moody’s Investor Services is often seen as the global barometer to assess the creditworthiness of organizations and nations across the globe.
