Unified credit ratings for PIF project contractors: Tassnief CEO
Imad Kurdi, CEO of Simah Rating Agency (Tassnief), said the Public Investment Fund's (PIF) economic enhancement program aims to unify financial solvency assessments for contractors and PIF-affiliated firms. The goal is to ensure efficient project execution and sustainable funding support.
Speaking to Argaam at the PIF-Private Sector Forum, Kurdi explained that the program aims to develop a unified credit rating system. This helps determine the project scale each contractor can handle based on financial capacity, improving transparency and reducing funding assessment discrepancies.
The methodology balances financial metrics (40%) with sector, industry, and management quality criteria. This structured approach ensures contractors take on projects aligned with their financial strength.
Kurdi highlighted that standardizing risk assessments across PIF-affiliated firms minimizes rating discrepancies and strengthens confidence among financiers and contractors.
He highlighted the collaboration with insurers and the Insurance Authority to introduce surety bonds as an alternative to bank guarantees, improving project efficiency and reducing reliance on bank facilities.
Project solvency has risen by an average of 28% since implementing the new framework, Kurdi said.
This improvement reflects greater contractor efficiency in executing mega-projects tied to Vision 2030, ensuring timely completion, he added.
Discussions are ongoing with the Saudi Central Bank (SAMA) to integrate the new credit ratings into the financial system, potentially enabling future bond or credit-linked securities issuances.
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