Moody's rates Saudi Electricity sukuk A1

Moody's Investors Service said it affirmed the A1 long-term issuer rating of Saudi Electricity Co. and the A1 ratings on the trust certificates (sukuk) issued under Saudi Electricity Global Sukuk Co. and Saudi Electricity Global Sukuk Co. 2.

Concurrently, the agency assigned a provisional A1 rating to the proposed sukuk issuance by Saudi Electricity Global Sukuk Co. 3, a special purpose vehicle of the company.

The outlook is stable.

Moody's said it considers the sukuk, which follows the structure of an "Ijarah" transaction, to be a senior unsecured obligation.

The agency's assignment of a provisional A1 rating to the sukuk is in line with Saudi Electricity's long-term issuer rating and reflects (a) the ultimate obligation of the company to ensure that the periodic distribution amount is always maintained; and (b) the existence of a purchase undertaking, which implies that sukuk holders ultimately rely on the creditworthiness of Saudi Electricity for repayment when the trust is dissolved.

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