Moody’s changes PIF credit rating outlook to ‘positive’

23 March 2023 Riyadh, KSA
  • Agency affirms PIF’s A1 issuer rating; underlines “very strong fundamental credit strengths”
  • The Fund has a scorecard-indicated outcome of Aa2, and a National Scale Rating of, which is the highest possible rating of its kind for entities in Saudi Arabia
Moody’s Investors Service on Thursday changed PIF’s credit rating outlook to “positive” and affirmed the Fund’s A1 issuer rating. Such ratings are measures of creditworthiness, and A1 is considered an indication of very strong fundamental credit strength.
Moody’s assigns PIF a baseline credit assessment of a1, reflecting the Fund’s “very strong fundamental credit strengths”. When mapped to the Moody’s Investment Holding Companies and Conglomerates rating methodology, this results in a scorecard-indicated outcome for PIF of Aa2.
The rating agency highlighted PIF’s steady dividend income stream, high-quality investment portfolio, and sector diversification. PIF has a National Scale Rating – opinions of the relative creditworthiness of issuers and financial obligations within one country – of, the highest possible NSA rating that entities in Saudi Arabia can obtain. 
In February 2022, Moody’s awarded PIF its inaugural international credit rating, signaling the Fund’s creditworthiness, quality investment portfolio, and strong governance principles.
PIF issued its inaugural green bond in October 2022, the first-ever green bond issued by a sovereign wealth fund and the first-ever 100 year green bond. This was followed by a second green bond issuance in February 2023 to finance or refinance eligible green projects, in accordance with PIF’s Green Finance Framework.
PIF’s strong creditworthiness was also demonstrated in November 2022, when it announced it had secured a USD 17 billion self-arranged term loan, representing the largest such facility ever raised for general corporate purposes.