Fitch Ratings on Oct. 7 lowered its long-term issuer default rating for state-owned Saudi Arabian Oil Co., or Saudi Aramco, to A from A+ after downgrading Saudi Arabia's long-term foreign-currency issuer default rating to A from A+. The outlook is stable.
The rating agency also assigned the state-owned oil giant a short-term issuer default rating of F1+ due to its strong stand-alone liquidity position and financial flexibility, which is in line with the sovereign's short-term rating.
Fitch said the downgrade was due to Saudi Aramco's rating being capped by Saudi Arabia, which reflects the interdependence between the two and the influence the state has on the company through strategic direction, dividends and taxation.
The rating agency estimated that the Sept. 14 attacks will have a minimal impact on Saudi Aramco's operational and financial performance for the year and said it has not changed its assessment of the company's stand-alone credit profile.
