As a new achievement for STC, Moody's in its latest report - published on 18th of April 2019 - upgraded (STC) long-term Issuer Rating to A1 from A2 with a stable outlook.
This achievement is a reflection of STC’s excellent financial and operational position, strong liquidity, and low financial leverage that the company enjoys. Further, this rating upgrade confirms STC’s leading market position, competitive advantage in the telecommunication sector as well as the strategic role played by STC in supporting the government economic initiatives.
The rating upgrade factors in improvements in the sovereign and operating environment for STC in Saudi Arabia since 2016 and the adoption of strong financial policies, where Moody’s expects that STC will maintain a strong standalone creditworthiness in future.
STC credit rating of “A1” now stands equivalent to the Government of the Kingdom of Saudi Arabia witch is a critical and key milestone for STC as this is the 1st time since STC has been rated by Moody’s (from 2007) that its assigned credit rating, which is equal to the Government of Saudi Arabia
Source: STC Press Release
