Moody's keeps Apicorp's credit outlook stable amid strong profitability

Moody's keeps Apicorp's credit outlook stable amid strong profitability

Moody's affirmed the Arab Petroleum Investments Corporation's long-term issuer and senior unsecured ratings at Aa2 while maintaining a stable outlook for the multilateral development bank.

The agency based its assessment on the Dammam-based bank's "high capital adequacy, supported by a track record of strong profitability, robust asset quality and low levels of nonperforming assets, which balance relatively high leverage."

Apicorp, which is owned by the 10 members of the Organisation of Arab Petroleum Exporting Countries, is also "supported by its very strong liquidity, underpinned by ample availability of liquid resources to cover upcoming net cash outflows, and a well-diversified funding structure," the agency added.

Moody's took into account potential risks the bank faces from operating in countries with elevated geopolitical tensions and high exposure to commodity prices.