Crown Prince Mohammed bin Salman’s Saudi Public Investment Fund (PIF) has received an A1 rating from Moody’s with a stable outlook.
The PIF rating, according to Moody’s, demonstrates “very excellent credit fundamentals” and “a high-quality portfolio of investments with consistent distributions.”
The fund has developed to become one of the most important entities in Saudi Arabia’s economic diversification, according to the report.
In an interview with Al-Arabiya, a member of the Saudi Economic Association Muhammad Al-Omran said the classification shows the fund’s essential aspects’ strength.
He stated that he had a portfolio worth more than $400 billion, with high-quality investments that payout consistently, and that his solid liquidity totals $60 billion.
Moody’s also affirmed that the Public Investment Fund has excellent liquidity, with around $45 billion in cash assets.
According to the credit rating agency, the Saudi Public Investment Fund’s assets increased from $152 billion in 2015 to $412 billion in 2020.
According to Moody, the PIF will play a critical role in assisting Saudi Arabia in achieving net-zero emissions by 2060.
The Saudi Public Investment Fund was also given an A credit rating by Fitch, matching the sovereign rating of the Kingdom.
This lends support to the sovereign wealth fund and its vital role in the Kingdom’s economic diversification efforts.
During the expansion phase of its activities, the Public Investment Fund was planned to gradually tap foreign debt markets while benefiting from reliable cash flows from the government.