Fitch upgrades Saudi Electricity

Fitch Ratings said it upgraded Saudi Electricity Co.'s long-term issuer default rating and senior unsecured rating to A from A-.

“The upgrade is driven by an upward revision of SEC's stand-alone credit profile (SCP) to bbb from bbb-, while maintaining the company's support score under our government-related entities (GREs) rating criteria at 35. As a result, the Kingdom of Saudi Arabia's (KSA; A/stable) long-term IDR is now three notches above SEC's SCP, resulting in rating equalization under our GRE criteria,” Fitch said in a press release.

The SCP reflects its scale in revenue and power generation capacity, its dominant market position in the power-generation sector and its monopoly in electricity transmission and distribution, the agency said.

The outlook is stable.

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