APICORP Receives ‘AA-’ Credit Rating From S&P Global; Reinforcing Its Position as a Leading Multilateral Lending Institution

The Arab Petroleum Investments Corporation (APICORP), a multilateral lending institution, today announced that it has received an 'AA-' credit rating from S&P Global, reflecting the robust financial performance and risk profile.

With this latest S&P credit rating, APICORP becomes one of the highest rated Arab financial institutions, holding ratings of 'AA-' from S&P, ‘AA’ from Fitch, and ‘Aa2’ from Moody’s.

S&P noted that the rating’s stable outlook reflects the expectation that APICORP will continue to support member countries’ energy sectors while increasing its policy importance by helping advance the energy transition agenda in the region, without a deterioration in capital adequacy or liquidity.

Furthermore, the report noted APICORP's extremely strong financial profile with a stand-alone credit profile (SACP) assessment of 'AA-' based on a risk-adjusted capital ratio of 22.8% and strong funding and liquidity profile.

S&P Global also noted APICORP’s close relationship with its Member Countries and long track record of profitable years and a high return on equity, averaging 5.4% over the past five years, which is stronger than most rated multilateral lending institutions.

Dr. Ahmed Ali Attiga, CEO of APICORP, commented: “Complementing our rating journey that began with Moody’s and then Fitch four years ago, the latest recognition from S&P bolsters APICORP’s position as one of the highest rated financial institutions in the MENA region. This rating confirms our strong credit profile – and will further enable us to continue delivering on our wider development mandate for the energy sector and hydrocarbon industries.” 

“The rating enables APICORP to benefit from enhanced market access and mobilize financial resources at competitive rates, thereby enhancing lending capabilities for our Member Countries to accelerate their transition to a cleaner and more sustainable energy future,” he added.

Supporting energy transition in the MENA region

For its 2020-2024 five-year strategy, APICORP developed and embedded an environmental, social, and governance (ESG) policy framework across its operations. Institutionalizing the Corporation’s commitment towards leading the energy transition in MENA, the framework includes numerous initiatives such as earmarking US$1 billion to fund green energy projects and sustainable energy companies over the next two years.