Fitch affirms Saudi public investment fund at “A+”, Outlook Stable

Fitch Ratings Agency has affirmed the classification of the Saudi Public Investment Fund as “A+”, with a stable outlook.

The Ratings agency maintained the long-term default rating of the Saudi Public Investment Fund in foreign and local currency (IDR) at “A+” with a stable outlook.

Fitch Ratings Agency explained in a report that the move reflected the unchanged “very strong” valuation of the fund’s status, ownership, and management.

In Fitch’s view, the General Investment Fund is a long-term strategic investment fund that maintains its financial independence in the implementation of its investments and operational activities. It also serves as the Kingdom’s main economic catalyst for the development of the country’s wealth by contributing to the growth of non-oil GDP and investing domestically and internationally across diverse sectors.

“The government transfer of a total share of 8% in Saudi Aramco during 2022 and 2023, distributed by 4% to the Public Investment Fund and 4% to Sanabel, a subsidiary of the Fund, is expected to strengthen the Public Investment Fund’s dividend base,” The Ratings Agency said.

Fitch was likely to waive the distribution of the Public Investment Fund’s profits in the coming period, aiming to put more money into the sovereign fund and subsidiaries to implement its Vision 2030 policy.