Reuters reported that Moody's credit rating agency changed the outlook for the rankings of a number of major Saudi government institutions and companies to negative, as losses this year have receded due to low oil prices and the Corona pandemic.
According to Reuters, the top Saudi companies whose future rating has become negative include the Saudi Petroleum Company (Aramco), the Saudi Basic Industries Corporation (SABIC), and the Saudi Telecom Company known as "Etisalat", and Saudi Electricity.
The drop in global oil prices, the Corona pandemic, the war in Yemen, and tensions in the region have had negative repercussions for the Saudi economy, and they continue to this day.
During the first quarter of this year, the losses of SABIC exceeded 949 million riyals, although it is the largest petrochemical, fertilizer and steel producer in the Middle East.
As for the Saudi Petrochemical Company (Kayan), its losses increased to more than 516.8 million riyals during the same period.
Meanwhile, the losses of the Saudi Arabian Mining Company (Maaden), which operates in the production of gold, aluminum and phosphate fertilizers, increased to more than 353.3 million riyals.
The losses of the "Saudi Electricity Company", which generates electricity and distributes it in all regions of the Kingdom, increased to 2441 million riyals.
The Saudi Industrial Investment Group Company, which produces benzene and styrene materials, recorded losses of 174 million riyals.
Meanwhile, the losses of Rabigh Refining and Petrochemical Company (Petro Rabigh), which operates in oil refining and petrochemical production, such as polyethylene and polypropylene, are estimated at 1797 million riyals.
The number of companies that announced their results for the first quarter of this year reached 41 companies, although it is customary for 159 companies to announce their results.
The total accumulated profits slightly exceeded 606 million riyals, a change of -108%, and the number of companies whose profits rose 24, while the number of companies whose profits decreased to 17 companies.
A few days ago, Moody's revised its future outlook for Saudi rating from “stable” to “negative”, for the first time in four years, but it maintained its rating at “any one” (A1), which is the fifth highest credit rating.
The US news network Bloomberg says the costs of the Corona pandemic and the shock of the oil price crash on global markets have put Saudi Arabia back, and put this country on the path to the worst economic downturn in two decades.