JEDDAH: Fitch ratings has affirmed Saudi Electricity Company's (SEC) Long-term Issuer Default Rating (IDR) and senior unsecured rating at 'AA-'. The outlook is stable. Fitch has also affirmed SEC's three Sukuk issues at 'AA-'. The affirmation reflects the continued alignment of SEC's ratings with the Kingdom of Saudi Arabia (KSA, 'AA-'/Stable), based on strong legal, operational, and strategic links, in accordance with Fitch's parent/subsidiary methodology. The Stable Outlook mirrors that of the Kingdom and also reflects predictability of SEC's near-term revenue stream and strength of the Saudi economy and its financial position. The liquidity at SEC is strong. At the end of Q111, SEC had approximately SR19.1 billion in total liquidity, including SR5.6 billion in cash. In 2010, SEC had successfully raised SR7 billion through its third Sukuk (maturing on 10 May 2030). SEC will spend approximately SR153 billion until 2015 on various segments of the electricity infrastructure in the Kingdom. In 2007, the government assumed SR13.3 billion payable by SEC to Saudi Aramco for fuel costs. In June 2011, the government approved an additional SR51 billion to finance the future capital projects as the company embarks on a large capital spending program through to 2015.
