Moody’s affirms Maaden’s Baa1 rating with stable outlook

Saudi Arabian Mining Co. (Maaden) headquarters

Moody’s Ratings affirmed Saudi Arabian Mining Co. (Maaden) at a Baa1 credit rating, maintaining a stable outlook.

In a statement, the rating agency assigned a (P)Baa1 preliminary unsecured rating to Maaden’s global medium-term note (GMTN) program and the sukuk issuance program of Maaden Sukuk Ltd.

The Baa1 rating reflects Maaden’s standalone credit assessment at baa3, the sovereign rating of Saudi Arabia, and the rating of the Public Investment Fund (PIF)—which holds a 65.22% stake in Maaden—at Aa3.

It also considers the low default dependence between Maaden and the government, as well as the strong likelihood of support in case of financial distress.

Moody’s highlighted Maaden’s position as a diversified commodity producer with a strong presence in the phosphate fertilizer market, a low-cost profile, and high margins throughout the cycle due to its integrated operations across phosphate and aluminum value chains.

Additionally, the company benefits from profitable raw material procurement, a strong creditworthy shareholding, and partnerships with well-established international players across its business segments.

The rating also factors in Maaden’s strategic importance to the national economy, improved credit metrics, a strong track record of debt reduction, prudent financial policies, and robust liquidity.

However, Moody’s noted that Maaden remains exposed to cyclical and volatile fertilizer and aluminum prices, along with a large-scale expansionary investment program.

Risks associated with capacity expansion and mining exploration projects are also considered, although these are mitigated by the company’s experience and strategic partnerships.

Regarding the sukuk program, the rating agency stated that sukuk holders will effectively be exposed to Maaden’s unsecured credit risk. They will not bear performance risks related to the Sukuk asset portfolio, nor will they have preferential claims or recourse rights over the leased assets, except as explicitly stated in transaction documents. Maaden’s obligations under the Sukuk certificates will rank pari passu with all its other unsecured liabilities.

Moody’s stable outlook reflected expectations that Maaden will continue to follow its prudent financial policy, maintain strong liquidity, and uphold credit metrics aligned with its current standalone credit assessment throughout the cycle.