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Simah Rating Agency (Tassnief) maintained long-term entity rating of “AAA’’ and short-term entity rating of “T-1” assigned to telecom firm stc, with a “Stable” outlook.
The long-term rating of ‘AAA’ denotes the highest creditworthiness and minimal credit risk, relative to other issuers or obligations in the Kingdom of Saudi Arabia. The short-term rating of T-1 indicates the strongest capacity for timely payment of financial commitments relative to other issuers or obligations, said the rating agency.
It added that the reaffirmation of stc’s AAA rating incorporates robust operating and financial performance and expected continuity of the same over the rating horizon.
Furthermore, the assigned ratings reflect stc’s leading market position and strong franchise, extensive network infrastructure and the company being an integrated Information Communication Technology (ICT) conglomerate with a diversified product portfolio and presence across almost all facets of ICT industry, Tassnief said.
The ratings also consider stc’s low business risk profile, strong balance sheet, conservative financial policy, low leveraged capital structure, healthy cash flow generation and abundant liquidity (cash & cash equivalents and investments), which provide the company with financial flexibility and are key rating drivers.
Tassnief does not anticipate any downward pressure on the ratings of stc over the rating horizon.
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