Fitch Downgrades Aramco Rating From ‘A+’ to ‘A’ With Stable Outlook

© AP Photo / Amr NabilStorage tanks are seen at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia
Storage tanks are seen at the North Jiddah bulk plant, an Aramco oil facility, in Jiddah, Saudi Arabia - Sputnik International
WASHINGTON (Sputnik) - The credit rating company Fitch said in a statement that it has downgraded Saudi Arabia state oil company Aramco’s credit rating from 'A+' to 'A' after an earlier downgrade of the country’s sovereign rating, citing repercussions from last month’s attack on its oil facilities.

"Fitch Ratings has downgraded Saudi Arabian Oil Company's (Saudi Aramco) Long-Term Issuer Default Rating (IDR) to 'A' from 'A+' following the downgrade of Saudi Arabia (A/Stable)", Fitch said.

The credit rating company said the outlook on Aramco was "stable".

Fitch explained that its decision to downgrade Aramco’s credit rating took into account the increasing geopolitical tensions in the Middle East and Saudi Arabia’s continued fiscal deficit, among other factors.

"We have downgraded Saudi Aramco's IDR to 'A' given the rating is capped by that of the sovereign to reflect interdependency between the two and the influence the state exerts on the company through strategic direction, dividends and taxation", Fitch said.

Aramco said it has managed to restore full production to both facilities since the 14 September attack.

On 14 September, Aramco temporarily lost production of 5.7 million barrels per day of crude in an attack on its Abqaiq oil processing facility and the Khurais oilfield.

Yemen-based Houthi rebels claimed responsibility for the attack, but the United States and some of its allies have blamed Iran. Tehran has denied the allegations it has anything to do with the attack on the Saudi oil facilities.

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