“Since adopting an active investment approach in 2004, the sovereign wealth fund has grown its portfolio’s net asset value at a compound annual growth rate of around 5%.

“Khazanah has achieved this growth while maintaining prudent financial policies, including a public leverage target,” the rating agency said in a note today.

The agency also highlighted that the credit strength of the 11 rated government-owned investment holding companies, including Khazanah, collectively controlling nearly US$2 trillion in assets globally as of 2023, generally reflects the creditworthiness of their respective governments.

Nonetheless, it added that the intrinsic credit quality of these companies – excluding extraordinary government support – varies significantly due to differences in credit metrics, liquidity, and portfolio composition.

Moody’s also pointed out that at least half of Khazanah and Saudi Arabia’s Public Investment Fund portfolios consist of publicly listed investments.