Riyadh, Saudi Real Estate Refinance Company (SRC), a wholly owned company by the Public Investment Fund (PIF), today announced high-quality investment grade corporate credit ratings granted to the company. The assigned ratings come as SRC continues to ...
Riyadh, Saudi Real Estate Refinance Company (SRC), a wholly owned company by the Public Investment Fund (PIF), today announced high-quality investment grade corporate credit ratings granted to the company. The assigned ratings come as SRC continues to accelerate its growth in contributing to the Kingdom’s housing market by providing liquidity into the secondary mortgage market in KSA.
Fitch Ratings issued an ‘A’ long-term issuer default rating for SRC, on par with the Kingdom’s credit rating, citing its systemic role in the development of a robust secondary mortgage market in the Kingdom. Additionally, Moody’s has issued SRC an ‘A2’ long-term issuer rating, attributed to the company’s solid asset quality and strong capitalization.
Majed Al-Hogail, The Minister of Municipal and Rural Affairs and Housing, Kingdom of Saudi Arabia, and Chairman of SRC said, “SRC was established by the Public Investment Fund to become an integral part of the Kingdom’s housing ecosystem and has played a vital role in supporting the development of a secondary mortgage market over the last three years. These high corporate credit ratings illustrate SRC’s efforts, the collective strength of Saudi Arabia’s housing ecosystem, which is in line with the Vision 2030 objectives to raise homeownership rates in Saudi Arabia.
SRC recorded remarkable growth since its launch in 2017, with its financing portfolio reaching SAR 6.5 billion in 2020 from SAR 2.2 billion in 2019. Furthermore, in March 2021 it successfully issued SAR 4 billion domestic Sukuk issue guaranteed by the Kingdom that was oversubscribed.
Fabrice Susini, CEO of SRC said, “Having launched only over three years ago by PIF, SRC has steadily focused on its mission and on achieving its central goals. We welcome these high corporate credit ratings, which showcase the strength of our business model, the adaptability of the industry and the strong ecosystem supported by government initiatives including Vision 2030’s housing program. These ratings will support SRC’s efforts in fulfilling its ambitious goals and boosting local and international investors' confidence, in the standards and viability of the Saudi real estate industry and its stakeholders.”
Source: Saudi Press Agency