ARDCO assigned (A-) credit rating, ‘Stable’ outlook by S&P Global

Riyadh Development Co. (ARDCO) said 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, according to a Tadawul statement.

The credit rating reflects the strength of the company’s financial position, its financial discipline, and the quality of its income-generating asset portfolio. It also highlights its low leverage levels and strong ability to meet its financial obligations.

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 the 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 statement added.

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 company also noted that the total value of projects currently under development has reached approximately SAR 9 billion, further strengthening its growth trajectory over the coming years.