Fitch rates GreenSaif, bonds A

Fitch Ratings said it assigned expected A ratings to GreenSaif Pipelines Bidco Sarl and its planned dollar-denominated bonds. The outlook is positive.

“The ratings are based on the contractual structure between GreenSaif, Aramco Gas Pipelines Co. (AssetCo) and the Saudi Arabian Oil Co. (Saudi Aramco; A/positive). GreenSaif owns 49% of AssetCo, which owns usage lease rights to a gas pipeline network in Saudi Arabia. Saudi Aramco owns 51% of AssetCo, operates the pipeline network and pays a tariff for its usage.

“The ratings are driven by the transaction's contractual structure and counterparty considerations rather than the financial metrics, which are adequate given the material de-risking and fixed revenue under the transportation, operation and maintenance agreement (TOMA),” Fitch said in a press release.

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