Fitch rates Saudi Electricity debt A+

Fitch Ratings said it assigned A+ issuer default and senior unsecured debt ratings to Saudi Electricity Co.

The outlook is stable.

The agency said the ratings reflect Saudi Electricity's dominant positions as the owner and operator of the entire national electricity transmission and distribution network in the Kingdom of Saudi Arabia, its 85% market share in generation capacity, good demand growth prospects on the back of economic and population growth and the company's low-cost feedstock, purchased under long-term supply agreements with state-owned Saudi Arabian Oil Co. at prices set by the government.

These strengths are partially offset by Saudi Electricity's limited transparency and its developing corporate governance, Fitch said.

The net debt-to-EBITDAR ratio was less than 1x at the end of 2006.

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