Riyadh Development Company Announces an (A-) Long-Term Credit Rating from S&P Global Ratings with a Stable Outlook

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Announcement Detail	Riyadh Development Company announced that it has obtained an A- credit rating on the Saudi Arabian national scale from S&P Global Ratings, with a stable outlook. This is the first credit rating the company has received, reinforcing its position within the investment-grade category in the Kingdom. The credit rating reflects the strength of Riyadh Development Company’s financial position, its financial discipline, and the quality of its income-generating asset portfolio. It also highlights the company’s low leverage levels and strong ability to meet its financial obligations. Notably, the company maintains a strong liquidity position, supported by cash balances and short-term investments approaching SAR 1 billion, providing substantial capacity to meet its financing needs in the period ahead. This rating is the result of the disciplined execution of Riyadh Development Company’s “Invest for Growth” strategy, a phased transformation program launched at the beginning of 2023. The strategy aims to enhance operational efficiency, diversify the company’s asset portfolio, and strengthen its position as a leading institutional real estate developer. The first phase focused on improving operational efficiency, maximizing returns from existing assets, and divesting underutilized assets. The second phase is aimed at business expansion and portfolio diversification across priority real estate sectors to build recurring revenue streams, supporting sustainable long-term growth as the company advances toward a holding company model. The total value of projects currently under development has reached approximately SAR 9 billion, further strengthening the company’s growth trajectory over the coming years.

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Explanation

Announcement Detail

Riyadh Development Company announced that it has obtained an A- credit rating on the Saudi Arabian national scale from S&P Global Ratings, with a stable outlook. This is the first credit rating the company has received, reinforcing its position within the investment-grade category in the Kingdom.

The credit rating reflects the strength of Riyadh Development Company’s financial position, its financial discipline, and the quality of its income-generating asset portfolio. It also highlights the company’s low leverage levels and strong ability to meet its financial obligations. Notably, the company maintains a strong liquidity position, supported by cash balances and short-term investments approaching SAR 1 billion, providing substantial capacity to meet its financing needs in the period ahead.

This rating is the result of the disciplined execution of Riyadh Development Company’s “Invest for Growth” strategy, a phased transformation program launched at the beginning of 2023. The strategy aims to enhance operational efficiency, diversify the company’s asset portfolio, and strengthen its position as a leading institutional real estate developer.

The first phase focused on improving operational efficiency, maximizing returns from existing assets, and divesting underutilized assets. The second phase is aimed at business expansion and portfolio diversification across priority real estate sectors to build recurring revenue streams, supporting sustainable long-term growth as the company advances toward a holding company model.

The total value of projects currently under development has reached approximately SAR 9 billion, further strengthening the company’s growth trajectory over the coming years.