Saudi Arabia’s sukuk gets Fitch rating of ‘A+’

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Saudi Arabia’s US dollar-denominated sukuk has received a final rating of “A+” with a stable outlook from Fitch Ratings.

The rating firm noted on Thursday that the rating comes in line with the expected rating assigned on April 4, 2017.

The Kingdom is raising funds on global markets to diversify its revenues and to plug a budget deficit caused by a slump in international oil prices.

According to Bloomberg, the government sold a $4.5 billion five-year sukuk tranche at 100 basis points over the mid-swap rate and an equally-sized 10-year tranche at a spread of 140 basis points to the benchmark.

Total subscription orders for the sukuk surpassed $33 billion (SAR 123.75 billion), according to MoF, underscoring the strong demand from investors for its first global issue under the sukuk program.

In October 2016, the Kingdom had raised $17.5 billion in the biggest ever bond sale from an emerging-market nation.

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