Saudi Arabia's SRC Launches Domestically Issued Mortgage Securities with Global Ratings
Saudi Real Estate Refinance Company launched its second issuance of mortgage-backed securities worth approximately SAR 420 million, receiving an AAAsf rating from Fitch and Aaa.sa from Moody's.
The Saudi Real Estate Refinance Company (SRC), a company owned by the Public Investment Fund, announced the launch of its second issuance of mortgage-backed securities supported by a loan portfolio, as reported by Argaam.
The issuance is backed by a mortgage loan portfolio valued at approximately SAR 420 million provided by six financing entities, marking the company's second transaction of its kind following the first issuance in August 2025, which did not carry published ratings.
The new issuance received an AAAsf rating with a stable outlook from Fitch Ratings and an Aaa.sa (sf) rating from Moody's, making it the first domestic issuance of its kind to publicly announce ratings.
This type of issuance represents an important tool for the real estate finance sector in the region, as it enables the transformation of mortgage loan portfolios into tradable financial instruments, thereby enhancing liquidity for lenders and expanding financing options available to citizens.
What Do These Terms Mean?
Residential Mortgage-Backed Securities (RMBS): Financial instruments issued and backed by a portfolio of mortgage loans, where investors receive returns from borrower loan installments.
Credit Rating: An evaluation issued by independent agencies assessing an issuer's ability to fulfill its financial obligations, starting from top grades like AAA and decreasing based on risk level.
Public Investment Fund: Saudi Arabia's sovereign wealth fund, which owns major companies and funds strategic projects across the Kingdom.
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