According to the credit rating company Moody’s, the strong balance sheets of GCC companies rated by the agency may help them in mitigating the impact of higher interest rates.
The agency observed in a new report on the impact of rising interest rates on the region’s companies that these firms, particularly those in the oil, gas, and petrochemical sectors, have very little debtor have very strong cash flow generations.
The majority of these businesses have excellent investment ratings and receive substantial government support, Moody’s said.
Moreover, the agency said that almost two-thirds of the debt on rated GCC companies’ balance sheets has a fixed interest rate.
