Riyadh – Moody’s Investors Service has assigned country-wide (NSR) ratings to long-term and short-term deposit ratings and counterparty risk ratings (CRR) of four Saudi banks.
Moody’s has assigned Bank AlJazira a nationwide deposit rating of A3.sa/SA-2 and nationwide CRRs A2.sa/SA-1. These ratings reflect the baa3 bank’s autonomous benchmark credit assessment (BCA) and two notches of increased government support. The A.sa is the higher of the two NSR categories corresponding to the overall rating of the local currency deposits of the bank.
The lender’s A3.sa NSR deposit rating indicates the bank’s small but growing Islamic banking franchise, improved capitalization, strong liquidity and funding. These strengths are moderated by the pressures on the bank’s solvency over the next two years due to falling oil prices, reduced public spending and the disruption induced by the coronavirus.
Moody’s has assigned Riyad Bank nationwide deposit ratings of Aa2.sa/SA-1 and nationwide CRRs Aa1.sa/SA-1. These ratings are supported by the bank’s global long-term deposit rating of A2.
Riyad Bank’s Aa2.sa NSR deposit rating highlights its strong capital base, stable deposit-based funding; and resilient profitability. These strengths are mitigated by the high asset quality risks that Moody’s expects over the next two years.
Samba Financial Group
The credit rating agency has assigned Samba nationwide deposit ratings of Aa1.sa/SA-1 and nationwide CRRs Aa1.sa/SA-1. The AA1.sa is the second highest NSR that can be achieved by an entity in Saudi Arabia and the highest currently assigned to a bank.
Samba’s Aa1.sa NSR deposit rating reflects its strong funding and liquidity; and strong solvency, with high capital buffers and solid profitability. However, these strengths are mitigated by the risks weighing on the quality of its assets and its profitability.
Moody’s has assigned deposit ratings of Aa1.sa/SA-1 nationally and CRR Aa1.sa/SA-1 nationally to SABB, which represents the bank’s stand-alone BCA of a3 and two steps to increase government support.
SABB’s Aa1.sa NSR deposit rating reflects the bank’s stable funding, strong liquidity, strong profitability and strong capitalization. These strengths are tempered by the pressures on the bank’s solvency over the next two years.