Moody's upgrades #Saudi Telecom's baseline credit assessment | ZAWYA MENA Edition

Moody's upgrades Saudi Telecom's baseline credit assessment | ZAWYA MENA Edition

Moody’s Investor Service has upgraded Saudi Telecom Company’s (STC) baseline credit assessment from a2 to a1, citing that the firm has maintained its strong financial metrics despite the headwinds.

The ratings agency also affirmed the long-term issuer rating of the state-controlled company, which is the biggest telecom provider in Saudi Arabia.

“The upgrade… reflects STC’s conservative financial profile and the ability of the company to maintain strong metrics despite some challenging times, including the oil price crash in 2015-2016 and more recently, the coronavirus pandemic,” Moody’s said.

The ratings agency also noted that STC has built a strong balance sheet over the years and is “well positioned” to take on growth opportunities in the kingdom’s telecom and information and communications technology (ICT) market.