Saud Bin Majed Al Daweesh, CEO of STC Group
STC maintained its (A+/stable/A-1+) rating issued by the international credit ratings agency (Standard & Poor's) thus keeping its status as one of the leading international telecommunications groups in terms of credit rating. This was announced during the agency's periodical review of ratings in accordance with the rating criteria. Key aspects have been considered during the assessment including the Group's strategic plans, future outlook, competition, regulatory environment, profitability with more emphasis on financial policies, financial resources management (including cash flow, financial solvency and credit and banking relationships.
This rating reaffirms Standard & Poor's vision with regards to the leading position of STC in the Saudi market, due to its integrated and high quality network, high operational profit margin in the local market, consistent growth of revenues in external operations, the strength of operational cash flow and the appropriate financial and monetary management.
Standard & Poor praised the Group's flexibility in terms of its financial policy for its continuous growth through external investment opportunities, highlighting the fact that all STC external subsidiaries obtained complete financing without the Group's assistance.
The existence of long-term credit facilities and a balanced policy of profit distribution in addition to the aforementioned flexibility confirmed the agency's positive vision about the Group's cash flow.
Eng. Saud Bin Majed Al Daweesh CEO of STC Group stated that the STC’s ability to maintain its rating level affirms its success in positively managing its financial resources and requirements over the past years which witnessed increasing local competition as well as the Group's external expansion to the extent that it now operates in ten different countries. Nevertheless, the Group managed to maintain its strong financial status, thanks to the strong growth in revenues and its ability to maintain its cash flow to meet all its operational requirements.
Al Daweesh continued, "The financial policies implemented within the Group are flexible and moderate in a manner that enables STC to fulfill its obligations towards its shareholders and at the same time maintain its high financial solvency that helps the Group maintain its leadership position in the region.”