Fitch Affirms SABIC's A+ Rating, Matching Parent Saudi Aramco

Fitch Ratings affirmed Saudi Basic Industries Corp. (SABIC)'s long-term rating at "A+" with a stable outlook, matching its parent company, Saudi Aramco. Argaam reported the affirmation on October 20, 2026.

Fitch's Rating Rationale for SABIC

Fitch said the rating reflects SABIC's low leverage, large-scale operations, cost-competitive production, conservative financial policies and strong liquidity position. The agency expects SABIC's net debt/EBITDA ratio to rise to around 1x by 2029, up from a net cash position in 2025, driven by higher capital expenditure on growth projects, global chemical oversupply and regional disruption pressures.

SABIC's shipments fell 33% quarter-on-quarter in Q2 2026 due to disruptions in the Strait of Hormuz, Fitch said. The company increased shipments through Saudi Arabia's western coast and boosted regional sales, and higher chemical prices offset higher logistics costs, limiting the quarter-on-quarter EBITDA decline to 18%. Fitch said shipment volumes are expected to recover from Q3 2026.

Fitch expects EBITDA to decline 22% in 2026 to around SAR13 billion, before gradually rising to SAR22 billion by 2029, supported by improving market conditions and the company's $3 billion transformation plan. Global chemicals oversupply will continue to pressure profit margins over 2026-2029, with markets expected to gradually improve as China slows the addition of new production capacity from 2028, the agency said.

Saudi Aramco, SABIC's parent, is investing in both green and blue hydrogen as part of its strategy to reduce or mitigate net greenhouse emissions across its assets, targeting a conservative approach to match the pace of industry demand, Hydrogeninsight reported on October 16, 2026.

Fitch's Scale and Ownership

Fitch Ratings is one of the three largest credit rating agencies globally alongside Moody's and S&P Global Ratings, according to akta.pro company records. The agency operates in more than 30 countries with dedicated regional offices in North America, Europe, Asia-Pacific, Latin America, the Middle East and Africa. Fitch Group is owned by Hearst Corporation, and Fitch Ratings is part of Fitch Group alongside Fitch Solutions and Fitch Bohua. Fitch Ratings was founded in 1914 and is headquartered in New York.

Fitch's Recent Rating Actions

Fitch affirmed Hercules Capital's BBB- corporate and unsecured debt ratings and BBB secured debt rating, all with a Stable Outlook, TradingView reported on October 16, 2026. The ratings reflect the company's first-lien focus and track record, supporting its investment-grade status and funding flexibility.

Fitch assigned a BBB rating to Samruk-Kazyna's $1.5 billion medium-term note program, equal to the fund's Long-Term Issuer Default Ratings, Trend reported on October 16, 2026. Fitch also affirmed Ageas's Insurer Financial Strength rating at AA- with a stable outlook, GlobeNewswire reported on October 14, 2026, reflecting Ageas's strong capitalization and financial performance, with annual inflows of EUR 19.6 billion in 2025.

SABIC's Capital Spending Plans

Fitch expects SABIC's capital expenditure to reach SAR10 billion in 2026 and around SAR13 billion annually over 2027-2029, as the company implements expansion projects in Saudi Arabia and China. SABIC held cash and short-term investments totaling around SAR40 billion by the end of June 2026, compared to SAR3.2 billion in current debt, the agency said. Fitch said the stable outlook reflects its expectation that SABIC's credit metrics will remain strong, noting that any change in Saudi Aramco's credit rating would affect SABIC's rating.