Saudi EXIM Bank secures ‘A+' credit rating from Fitch, boosting non-oil export growth
RIYADH: The Saudi Export-Import Bank has received its first-ever ranking from Fitch, securing an 'A+' Long-Term Issuer Default Rating in foreign and local currencies, with a stable outlook.
The agency also assigned the bank a Short-Term IDR of 'F1+, 'reflecting strong confidence in its financial stability and government-backed role.
Fitch highlighted that the ratings stem from Saudi EXIM's strategic importance as a government-owned entity under the National Development Fund, as well as its key role in advancing Saudi Arabia's export financing, guarantees, and insurance policies.
Saudi EXIM Bank has been actively supporting small and medium-sized enterprises to boost non-oil exports and diversify the economy under Vision 2030. Recent deals have included partnerships with the International Islamic Trade Finance Corp., Arab National Bank and Saudi Awwal Bank.
Fitch noted in its assessment that 'SEB benefits from equity financing from the state, distributed promptly via NDF,' highlighting the bank's financial foundation.
Saudi EXIM CEO Saad Al-Khalb expressed pride in the rating from Fitch, calling it a milestone that underscores the bank's commitment to transparency and efficiency, SPA reported.
'This classification gives the bank a greater ability to seize new growth opportunities, enhance the access of domestic exports in global markets, and contribute more deeply to the diversification of the national economy,' Al-Khalb said.
In a post on X, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted the bank's role in advancing the Kingdom's non-oil exports— a key pillar of Vision 2030.
'Since its inception in 2020, it has provided over SR75 billion ($19.9 billion) in credit facilities, enabling Saudi non-oil exports to access more than 150 countries worldwide,' the minister said.
In 2024, Saudi Arabia's non-oil exports reached SR515 billion, marking the highest value in the Kingdom's history. This represents a 13 percent increase compared to the previous year and a 113 percent increase since the launch of Vision 2030, according to the Saudi News Agency.
Fitch said that SEB has received robust financial support, including an SR12.9 billion equity injection in 2023 and an SR185 million grant in 2021.
As the Kingdom's sole export credit agency, SEB is central to reducing reliance on oil by boosting non-oil exports. According to the agency, its lending portfolio surged to 58 percent of total assets in 2024, up from 47 percent the previous year. The bank also holds a substantial insurance reserve at NDF, ensuring exporters have risk coverage for global trade.
Fitch assigned SEB a support score of 45 out of 60, deeming government backing 'virtually certain' if needed.
The agency noted SEB's systemic importance, warning that any default would damage confidence in Saudi economic management.
Fitch compared SEB to top export credit agencies like Italy's SACE and Australia's Export Finance Australia, noting their shared high-level government linkages. The rating enhances SEB's ability to attract international investors and expand its global footprint.
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