Moody’s Announces A2 Corporate Credit Ratings to Saudi Real Estate Refinance Company

Moody’s Announces A2 Corporate Credit Ratings to Saudi Real Estate Refinance Company

The Saudi real estate market is being promoted by the activity of refinancing to increase investor confidence. (Asharq Al-Awsat)

Moody's has assigned first-time issuer ratings to Saudi Real Estate Refinance Company (SRC) of A2.

SRC's baa3 BCA reflects the company's solid asset quality and strong capitalization which are moderated by a still evolving profitability profile, high reliance on wholesale funding, concentrated exposure to the relatively new mortgage market in Saudi Arabia, and low levels of liquidity.

The Company announced that this high rating comes as a result of its continuous work to provide the necessary liquidity in the housing sector in the Kingdom, in a way that contributes to increasing the ownership of Saudi families and boosting the confidence of local and international investors in the Saudi market.

The Saudi Real Estate Refinance Company was established in 2017 to develop the Saudi housing finance market by enabling originators to offer homebuyers long- and short-term financing solutions.

SRC is solely owned by the Saudi government through the Public Investment Fund and is licensed to operate in the secondary real estate market by the Saudi Central Bank.

The Minister of Municipal and Rural Affairs and Housing and Chairman of SRC Majed al-Hogail said that the SRC was established