Fitch Ratings affirmed the Public Investment Fund’s (PIF) rating at 'A+', with a stable outlook.
Fitch maintained Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'A+', with a stable outlook.
The affirmation reflects Fitch's unchanged assessment of very healthy status, ownership and control, support track record and socio-political implications of default, and 'Strong' financial implications of default.
Accordingly, the PIF will obtain an overall government support score of 50 out of a maximum of 60 and an equalization of PIF's Issuer Default Ratings (IDRs) with those of the Kingdom of Saudi Arabia.
Fitch said that transferring 8% of the Saudi government’s shares in Saudi Aramco to the PIF (4% to the Fund and 4% to its subsidiary, Sanabil), is expected to strengthen the fund’s dividend base and thus more government support.
The government is expected to waive the PIF’s dividend distribution during the expected period, as it aims to inject more investments into the PIF and its subsidiaries to implement its policies under Vision 2030.