The Saudi Real Estate Refinance (SRC), a subsidiary of the Public Investment Fund (PIF), launches the Kingdom’s second residential mortgage-backed securities (RMBS), marking it as the first domestic issuance of its kind to receive publicly disclosed credit ratings from both Moody’s and Fitch.
The portfolio was originated by 6 financing entities, showcasing the collaborative efforts in the real estate sector.
Fitch has assigned the securities an AAAsf (sau) rating on its national scale, indicating a stable outlook. On the other hand, Moody’s has given them an Aaa.sa (sf) rating, which is the highest rating category on its national scale. These ratings provide an independent credit assessment of the securities, enhancing transparency and comparability in their credit characteristics.
These ratings play a crucial role in building institutional investor confidence in the asset class. They also contribute to broadening participation in Saudi Arabia’s domestic securitization market, fostering a more robust and diversified financial ecosystem.
Majid Al-Hogail, Minister of Municipalities and Housing, and Chairman, SRC, said, “Developing the secondary mortgage market bolsters the efficiency of the housing finance system by expanding long-term liquidity sources, diversifying investment instruments, and strengthening the links between mortgage finance and capital markets.”
Majeed Al-Abduljabbar, CEO, SRC said, “Diversifying the sources of assets in the portfolio, alongside independent credit ratings, would help develop this class of securities and enhance its appeal to institutional investors. The issuance supports the provision of long-term funding sources for mortgage finance providers, strengthens their available liquidity, and improves capital management efficiency, thereby contributing to the sustainability of residential mortgage finance and the development of the Kingdom’s secondary market.”
Developing this market allows financing entities to manage their capital more effectively, ensures the sustainability of funding sources, and strengthens the sector’s capacity to meet the increasing demand for housing, he explained.
The issuance builds upon SRC’s initial RMBS issuance, launched in August 2025. This initial issuance played a crucial role in establishing a domestic model for securitising residential mortgage financing and effectively linking financing portfolios to capital markets.
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