‎Insight into TASI-listed companies with credit ratings

A recent survey by Argaam revealed that 39 companies listed on the Main Market (TASI), and eight on the Nomu-Parallel Market, have received credit ratings from specialized agencies.

Credit ratings are key indicators of a company’s ability to meet its financial obligations on time. They are widely used to assess the creditworthiness of companies, governments, and issuers of financial instruments.

These ratings are issued by global agencies such as SP Global Ratings, Fitch Ratings, and Moody’s, as well as local agencies, most notably RATING Financial Analytics and SIMAH Rating Agency.

Rating agencies primarily evaluate the risks associated with a company’s debt issuances. A company’s ability to pay interest and principal on time is the most critical factor in determining its creditworthiness, which forms the basis for the final rating.

Tadawul-Listed Companies with Credit Ratings

Company

Credit Rating Agencies

Financial Analysis

Moody’s

Fitch

SP

Rating

Saudi Aramco

—

Aa3/A1

A+/F1+

AAA (sau)

—

—

ADES

—

—

B+

B+

—

MEPCO

—

—

—

—

A-

Maaden

—

Baa1

BBB+

—

—

SABIC

—

Aaa3/A2

A+/F1+

A+

KsaAAA

—

Al Kathiri Holding

—

—

—

—

BBB-

Alkhaleej Training

A-

—

—

—

BBB+

Almarai

—

Baa3

BBB-

—

Riyad Bank

—

A1

A-

A

—

Bank AlJazira

—

A3

A-

—

—

SAIB

—

A2

A-

BBB+

—

BSF

—

A1

A-

A-

—

SAB

—

A1

bbb+

—

—

ANB

—

A1

BBB+

BBB+

—

Al Rajhi Bank

—

Aa3

A-

A

—

Bank Albilad

—

A2

A-

—

—

Alinma Bank

—

A2

A-

A-

—

SNB

—

Aaa3

A-

A-

—

Tawuniya

—

—

A

AAA (sau)

—

—

Malath

—

—

—

—

A-

Arabian Shield

—

—

A-

AA

—

—

SAICO

—

—

—

—

A-

Gulf Union Alahlia

—

—

BBB+

AA-(sau)

—

—

Arabia Insurance

—

—

—

A+

—

Al-Etihad Insurance

—

—

A3

AA-

—

—

Al Sagr

—

—

BBB

A+ (Sau)

BBB

—

UCA

—

—

—

A

—

Saudi Re

—

A3

A2

A-

—

Al Rajhi Takaful

—

A3

—

—

—

Chubb Arabia

—

—

—

AA

—

GIG

—

—

—

—

A

LIVA

—

—

Baa2

—

—

Wataniya Insurance

—

—

—

A-

ksaAA+

—

2P

—

—

—

—

BBB+

stc

—

Aa3

A+

A+

AAA

Alkhorayef

—

—

—

—

A-

ACWA Power

—

—

BBB-

—

—

Saudi Electricity

—

Aa3

A+

A+

KSAAA

—

Cenomi Centers

—

—

BB

BB-

A-

Sumou Real Estate

—

—

—

—

BBB+

Mobily

– AA

Zain KSA

A

Nomu- Listed Companies with Local Credit Ratings

Company

Credit Rating Agencies

Financial Analysis

Moody’s

Fitch

SP

Rating

Aqaseem Factory

BBB-

—

—

—

—

National Building

BBB+

—

—

—

—

Rawasi Albina

BBB

—

—

—

—

Mayar

BBB

—

—

—

—

Multi Business Group

—

—

—

—

BB+

Quara Finance

—

—

—

—

BBB-

Ladun

—

—

—

—

BBB+

WSM

BBB-

—

—

—

—

The following table presents the credit rating grades as defined by each agency.

Credit Ratings by Agency

Agency

Grade

Description

Moody’s

Investment Grade

Aaa

Highest rating, representing the lowest level of investment risk

Aa1, Aa2, Aa3

High grade

A1, A2, A3

Upper-medium grade

Baa1, Baa2, Baa3

Medium grade

Speculative Grade

Ba1, Ba2, Ba3

Speculative elements

B1, B2, B3

Subject to high credit risk

Caa1, Caa2, Caa3

Poor standing

Ca

Highly speculative or near default

C

Lowest rating; securities are typically in default, with little prospect for recovery of principal or interest

SP

Investment Grade

AAA

Extremely strong capacity to meet financial commitments

AA

Very strong capacity to meet financial commitments

A

Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions

BBB

Adequate capacity to meet financial commitments but more vulnerable to adverse economic conditions

Speculative Grade

BB

Less vulnerable in the near term but faces ongoing uncertainties due to adverse business, financial, or economic conditions

B

More vulnerable to adverse conditions but currently has the capacity to meet financial commitments

CCC

Currently vulnerable and dependent upon favorable business, financial, and economic conditions to meet commitments

CC

Highly vulnerable; default has not yet occurred but is virtually certain

C

Highly vulnerable to nonpayment; recovery is expected to be lower than for higher-rated obligations.

D

In default or in breach of an implied promise; also used when a bankruptcy petition has been filed

Fitch

AAA

Lowest expected default risk; assigned only in cases of exceptionally strong capacity to meet financial commitments, unlikely to be adversely affected by foreseeable events

AA

Very low expected default risk; denotes very strong capacity to meet financial commitments, with limited vulnerability to foreseeable events

BB

Elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments.

B

Material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC

Low margin for safety.Default is a real possibility.

CC

Default of some kind appears probable.

C

A default or default-like process has begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.

RD

An issuer that in Fitch’s opinion has experienced an uncured payment default or DDE on a bond, loan or other material financial obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedure, and has not otherwise ceased operating.

D

An issuer that in Fitch’s opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure or that has otherwise ceased business and debt is still outstanding

Rating

High Grade

AAA, AA+, AAA, AA-

Negligible risk

Investment Grade

A+, A, A-

Very low risk

BBB+, BBB, BBB-

Low risk

Near-Excellent

BB+, BB, BB-

Low to moderate risk

Below Excellent

B+, B, B-

High risk

Credit Watch

CCC+, CCC, CCC-

Very high risk

Distressed

CC, C

Extremely high risk

D

In default

Financial Analysis

High Grade

AAA, AA+

Highest creditworthiness, implying minimal credit risk

AA, AA-

Very high creditworthiness, implying very low credit risk

A+, A, A-

High creditworthiness, implying low credit risk

Investment Grade

BBB+, BBB, BBB-

Adequate creditworthiness, implying moderate credit risk

Near-Excellent

BB+, BB, BB-

Weakened creditworthiness, implying elevated credit risk

Below Excellent

B+, B, B-

Very low creditworthiness, implying very high credit risk

Credit Watch

CCC+, CCC, CCC-

Extremely low creditworthiness, implying significantly high credit risk

Distressed

CC, C

Highly speculative credit profile, with default seen as imminent

D

Explicit default

A recent survey by Argaam revealed that 39 companies listed on the Main Market (TASI), and eight on the Nomu-Parallel Market, have received credit ratings from specialized agencies.

Credit ratings are key indicators of a company’s ability to meet its financial obligations on time. They are widely used to assess the creditworthiness of companies, governments, and issuers of financial instruments.

These ratings are issued by global agencies such as SP Global Ratings, Fitch Ratings, and Moody’s, as well as local agencies, most notably RATING Financial Analytics and SIMAH Rating Agency.

Rating agencies primarily evaluate the risks associated with a company’s debt issuances. A company’s ability to pay interest and principal on time is the most critical factor in determining its creditworthiness, which forms the basis for the final rating.

Tadawul-Listed Companies with Credit Ratings

Company

Credit Rating Agencies

Financial Analysis

Moody’s

Fitch

SP

Rating

Saudi Aramco

—

Aa3/A1

A+/F1+

AAA (sau)

—

—

ADES

—

—

B+

B+

—

MEPCO

—

—

—

—

A-

Maaden

—

Baa1

BBB+

—

—

SABIC

—

Aaa3/A2

A+/F1+

A+

KsaAAA

—

Al Kathiri Holding

—

—

—

—

BBB-

Alkhaleej Training

A-

—

—

—

BBB+

Almarai

—

Baa3

BBB-

—

Riyad Bank

—

A1

A-

A

—

Bank AlJazira

—

A3

A-

—

—

SAIB

—

A2

A-

BBB+

—

BSF

—

A1

A-

A-

—

SAB

—

A1

bbb+

—

—

ANB

—

A1

BBB+

BBB+

—

Al Rajhi Bank

—

Aa3

A-

A

—

Bank Albilad

—

A2

A-

—

—

Alinma Bank

—

A2

A-

A-

—

SNB

—

Aaa3

A-

A-

—

Tawuniya

—

—

A

AAA (sau)

—

—

Malath

—

—

—

—

A-

Arabian Shield

—

—

A-

AA

—

—

SAICO

—

—

—

—

A-

Gulf Union Alahlia

—

—

BBB+

AA-(sau)

—

—

Arabia Insurance

—

—

—

A+

—

Al-Etihad Insurance

—

—

A3

AA-

—

—

Al Sagr

—

—

BBB

A+ (Sau)

BBB

—

UCA

—

—

—

A

—

Saudi Re

—

A3

A2

A-

—

Al Rajhi Takaful

—

A3

—

—

—

Chubb Arabia

—

—

—

AA

—

GIG

—

—

—

—

A

LIVA

—

—

Baa2

—

—

Wataniya Insurance

—

—

—

A-

ksaAA+

—

2P

—

—

—

—

BBB+

stc

—

Aa3

A+

A+

AAA

Alkhorayef

—

—

—

—

A-

ACWA Power

—

—

BBB-

—

—

Saudi Electricity

—

Aa3

A+

A+

KSAAA

—

Cenomi Centers

—

—

BB

BB-

A-

Sumou Real Estate

—

—

—

—

BBB+

Mobily

– AA

Zain KSA

A

Nomu- Listed Companies with Local Credit Ratings

Company

Credit Rating Agencies

Financial Analysis

Moody’s

Fitch

SP

Rating

Aqaseem Factory

BBB-

—

—

—

—

National Building

BBB+

—

—

—

—

Rawasi Albina

BBB

—

—

—

—

Mayar

BBB

—

—

—

—

Multi Business Group

—

—

—

—

BB+

Quara Finance

—

—

—

—

BBB-

Ladun

—

—

—

—

BBB+

WSM

BBB-

—

—

—

—

The following table presents the credit rating grades as defined by each agency.

Credit Ratings by Agency

Agency

Grade

Description

Moody’s

Investment Grade

Aaa

Highest rating, representing the lowest level of investment risk

Aa1, Aa2, Aa3

High grade

A1, A2, A3

Upper-medium grade

Baa1, Baa2, Baa3

Medium grade

Speculative Grade

Ba1, Ba2, Ba3

Speculative elements

B1, B2, B3

Subject to high credit risk

Caa1, Caa2, Caa3

Poor standing

Ca

Highly speculative or near default

C

Lowest rating; securities are typically in default, with little prospect for recovery of principal or interest

SP

Investment Grade

AAA

Extremely strong capacity to meet financial commitments

AA

Very strong capacity to meet financial commitments

A

Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions

BBB

Adequate capacity to meet financial commitments but more vulnerable to adverse economic conditions

Speculative Grade

BB

Less vulnerable in the near term but faces ongoing uncertainties due to adverse business, financial, or economic conditions

B

More vulnerable to adverse conditions but currently has the capacity to meet financial commitments

CCC

Currently vulnerable and dependent upon favorable business, financial, and economic conditions to meet commitments

CC

Highly vulnerable; default has not yet occurred but is virtually certain

C

Highly vulnerable to nonpayment; recovery is expected to be lower than for higher-rated obligations.

D

In default or in breach of an implied promise; also used when a bankruptcy petition has been filed

Fitch

AAA

Lowest expected default risk; assigned only in cases of exceptionally strong capacity to meet financial commitments, unlikely to be adversely affected by foreseeable events

AA

Very low expected default risk; denotes very strong capacity to meet financial commitments, with limited vulnerability to foreseeable events

BB

Elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time; however, business or financial flexibility exists that supports the servicing of financial commitments.

B

Material default risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and economic environment.

CCC

Low margin for safety.Default is a real possibility.

CC

Default of some kind appears probable.

C

A default or default-like process has begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.

RD

An issuer that in Fitch’s opinion has experienced an uncured payment default or DDE on a bond, loan or other material financial obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or other formal winding-up procedure, and has not otherwise ceased operating.

D

An issuer that in Fitch’s opinion has entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure or that has otherwise ceased business and debt is still outstanding

Rating

High Grade

AAA, AA+, AAA, AA-

Negligible risk

Investment Grade

A+, A, A-

Very low risk

BBB+, BBB, BBB-

Low risk

Near-Excellent

BB+, BB, BB-

Low to moderate risk

Below Excellent

B+, B, B-

High risk

Credit Watch

CCC+, CCC, CCC-

Very high risk

Distressed

CC, C

Extremely high risk

D

In default

Financial Analysis

High Grade

AAA, AA+

Highest creditworthiness, implying minimal credit risk

AA, AA-

Very high creditworthiness, implying very low credit risk

A+, A, A-

High creditworthiness, implying low credit risk

Investment Grade

BBB+, BBB, BBB-

Adequate creditworthiness, implying moderate credit risk

Near-Excellent

BB+, BB, BB-

Weakened creditworthiness, implying elevated credit risk

Below Excellent

B+, B, B-

Very low creditworthiness, implying very high credit risk

Credit Watch

CCC+, CCC, CCC-

Extremely low creditworthiness, implying significantly high credit risk

Distressed

CC, C

Highly speculative credit profile, with default seen as imminent

D

Explicit default