Moody’s upgrades APICORP’s credit rating to Aa2

Moody’s Investors Service has upgraded the credit rating of Arab Petroleum Investments Corporation (APICORP) from ‘Aa3’ to ‘Aa2’ with ‘stable’ outlook, a statement said on Saturday.

This upgrade was ‘driven by the Corporation’s progress in sustaining and further improving its financial performance and resilience’, APICORP said in the statement, adding that its short-term issuer rating was also affirmed at Prime-1.

“The key drivers for the upgrade include the steady improvement that APICORP has made in its liquidity and funding profile by diversifying its funding sources. This has allowed APICORP to significantly reduce its reliance on short-term wholesale deposits and eliminate short-term asset-liability mismatches,” Moody’s maintained.