trending Market Intelligence /marketintelligence/en/news-insights/trending/g0jAaQASyjLOIKL1uy7XZQ2 content esgSubNav
In This List

Fitch downgrades Saudi Electricity to A-

Blog

Japan M&A By the Numbers: Q4 2023

Video

See the Big Picture: Energy Transition in 2024

Podcast

IR in Focus | Episode 10: Capital Markets Outlook

Blog

Infographic: The Big Picture 2024 – Energy Transition Outlook


Fitch downgrades Saudi Electricity to A-

Fitch Ratings downgraded Saudi Electricity Co.'s long-term issuer default and senior unsecured ratings to A- from A, with a stable outlook, following a sovereign downgrade on Saudi Arabia.

The rating agency considers the Saudi government's ownership and control of Saudi Electricity as strong, with the sovereign owning an 81% indirect holding in the utility company. The Saudi government has significant influence on the company's strategic and investment plans and operational activities, Fitch added.

A positive sovereign ratings action on Saudi Arabia would also result in a ratings upgrade for Saudi Electricity. However, a significant change in the state utility's operational structure that results in weaker links with the kingdom, as well as introduction of competition without Saudi Electricity fully recovering investments alongside lessened government support, will result in a downgrade, Fitch said.