Saudi Real Estate Refinance obtains ‘A2’, ‘A’ credit ratings from Moody’s, Fitch

Saudi Real Estate Refinance Co. (SRC), owned by the Public Investment Fund (PIF), received an ‘A2’ long term issuer credit rating from Moody’s.

The rating was attributed to the company’s solid asset quality and strong capitalisation in the Saudi secondary mortgage market.

SRC also received an ‘A’ long term issuer credit rating from Fitch Ratings for its integral strategic role in providing liquidity to the housing mortgage market for Saudi families, in line with the Vision 2030 objectives to raise homeownership rates to 70% by 2030.

The company attributed the ratings to its continuous efforts in providing the necessary liquidity to the Kingdom’s housing sector, contributing to the rising rates of Saudi citizens owning their first homes.

The ratings were also granted for raising local and international investor confidence in the Saudi market and for taking significant steps in the mortgage market.

Majed Al-Hogail, Minister of Municipal and Rural Affairs and Housing and Chairman of SRC said, “The high credit ratings granted to SRC reflect the company’s strength and its integral role in the Kingdom’s housing ecosystem over the last three and a half years. The ratings also illustrate investor confidence in the collective strength of Saudi Arabia’s housing ecosystem.

“This is another milestone for SRC, which strives to fulfil its objectives to the highest standards by providing housing options and financing solutions that meet the aspiration of Saudi families”.

SRC has been registering growth since its launch in 2017, with its financing portfolio reaching SAR 6.5 billion in 2020 from SAR 2.2 billion in 2019.

In March 2021, the company successfully issued SAR 4 billion domestic sukuk issue guaranteed by the Kingdom that was oversubscribed.

Fabrice Susini, CEO of SRC, commented that these high-quality investment grade corporate credit ratings were granted to SRC, established only three years ago by PIF, for its steady focus on achieving its mission and central goals.

He welcomed these ratings, which showcase the strength of SRC’s business model, the resilience of the industry and the strong ecosystem supported by government initiatives and the housing program.

The ratings will support SRC’s efforts in fulfilling its ambitious goals and boosting local and international investor confidence in the standards and viability of the Saudi real estate industry and its stakeholders, Susini added.