Fitch has confirmed Saudi Aramco's A+ rating and keeps its outlook stable
Fitch has confirmed Saudi Aramco’s A+ rating and keeps its outlook stable
On Monday, Fitch Ratings confirmed that Saudi Aramco’s long-term ratings for both foreign and local currencies remain at A+, with a stable outlook.
Fitch said it kept Saudi Aramco’s rating at A+ because of the strong connection between the company and the Saudi government, which owns most of Aramco. The government has influence over the company, for example, by regulating how much oil it produces to meet OPEC+ targets.
This rating came just after OPEC+, led by Saudi Arabia, announced it would extend its oil production cuts. The cuts are meant to help boost oil prices due to weaker global demand. OPEC+ plans to gradually reduce these cuts starting in April 2025.
Declining profits
Fitch also mentioned that, even though Aramco is financially strong and has never needed government help, there is still a chance the company could receive support from the government in the future.
Aramco’s profits dropped 15.4% in the third quarter, falling to $27.6 billion from $32.5 billion last year. This was due to lower oil prices and weaker refining profits. By the end of September, Aramco’s assets also decreased slightly, from $660.8 billion at the end of 2023 to $652.3 billion.
Published: 10th December 2024
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