Fitch assigns ‘A+’ rating to Saudi Arabia’s Sukuk

Observer Report


Fitch Ratings has assigned a final rating of ‘A+’ to Saudi Arabia’s trust certificate programme and US dollar-denominated sovereign global certificates (Sukuk) issued through KSA Sukuk Limited under the programme.
The rating is in line with the expected rating assigned on 4 April 2017 and with Saudi Arabia’s Long-Term Issuer Default Rating (IDR) of ‘A+’ with a Stable Outlook.
KSA Sukuk Limited, registered in the Cayman Islands, is the issuer and trustee and has been incorporated solely for the purpose of the Sukuk transaction. The Sukuk is a hybrid Mudharaba-Murabahah structure.
The Sukuk issuance rating is driven solely by Saudi Arabia’s Long-Term IDR, which stands at ‘A+’ with a Stable Outlook following a downgrade on 22 March 2017. The Sukuk issuance rating is based on Fitch’s view that a default of these senior unsecured obligations would reflect a default of Saudi Arabia in accordance with the agency’s rating definition.

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