Moody's gets licence to rate Saudi Arabia's corporates

Moody's gets licence to rate Saudi Arabia's corporates:

"Moody's has obtained a licence to operate rating activities in Saudi Arabia, joining the two major foreign credit rating agencies Fitch and Standard & Poor's, as the country seeks to develop its corporate debt capital markets. Saudi Arabia's corporate sector has traditionally relied on the bank loan market to back its funding requirements. But since low oil prices started impacting liquidity in the local banking system, authorities have encouraged more bond issuances as bonds allow a larger investor base such as insurance and pension funds to be tapped, therefore reducing the strain on the banking system."



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