Fitch affirms Saudi Aramco's rating at ‘A’, revises outlook to positive

Logo of Saudi Aramco

Fitch Ratings affirmed Saudi Arabian Oil Co.'s (Saudi Aramco) long-term foreign and local currency issuer default ratings (IDR) at 'A', and revised outlook to positive from stable. 

“Saudi Aramco's rating is constrained at that of its majority shareholder Saudi Arabia, given the close links between the company and the sovereign,” Fitch stated.

It added that the company’s financial profile benefits from strong pre-dividend free cash flow generation and conservative leverage. Its business profile is characterized by large scale production, vast reserves, low output costs and expansion into downstream and petrochemicals.