Press Release

Riyadh, Saudi Arabia; 19 April 2021: Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund (PIF), received an ‘A2’ long term issuer credit rating from Moody’s, one of the top international ratings agencies, attributed to the company’s solid asset quality and strong capitalisation in the Saudi secondary mortgage market. SRC also received an ‘A’ long term issuer credit rating from Fitch Ratings for its integral strategic role in providing liquidity to the housing mortgage market for Saudi families, in line with the Vision 2030 objectives to raise homeownership rates to 70% by 2030.

The assigned ratings illustrate SRC’s continuous efforts in providing the necessary liquidity to the Kingdom’s housing sector, contributing to the rising rates of Saudi citizens owning their first homes. The ratings were also granted to SRC for raising local and international investor confidence in the Saudi market and for taking significant steps in the mortgage market

SRC was established by the Public Investment Fund in 2017 to be the pillar of Saudi Arabia housing market by acting as a catalyst for accessible and affordable home financing solutions. His Excellency Majed Al-Hogail, Minister of Municipal and Rural Affairs and Housing, Kingdom of Saudi Arabia, and Chairman of SRC said, “The high credit ratings granted to SRC reflect the company’s strength and its integral role in the Kingdom’s housing ecosystem over the last three and a half years. The ratings also illustrate investor confidence in the collective strength of Saudi Arabia’s housing ecosystem. This is another milestone for SRC, which strives to fulfil its objectives to the highest standards by providing housing options and financing solutions that meet the aspiration of Saudi families.  

SRC recorded remarkable growth since its 2017 launch, with its financing portfolio reaching SAR 6.5 billion in 2020 from SAR 2.2 billion in 2019. Furthermore, in March 2021 it successfully issued SAR 4 billion domestic Sukuk issue guaranteed by the Kingdom that was oversubscribed.

Fabrice Susini, CEO of SRC said, “These high-quality investment grade corporate credit ratings were granted to SRC, established only three years ago by the Public Investment Fund, for its steady focus on achieving its mission and central goals. We welcome these ratings, which showcase the strength of our business model, the resilience of the industry and the strong ecosystem supported by government initiatives and the housing program. These ratings will support SRC’s efforts in fulfilling its ambitious goals and boosting local and international investor confidence in the standards and viability of the Saudi real estate industry and its stakeholders.”