UK-based rating agency Fitch affirms rating of a further eight banks
UK-based rating agency Fitch has revised the outlook of three Saudi Arabian banks from negative to stable as part of a widescale review of the banking sector.
The three banks are Banque Saudi Fransi, Sabb and Arab National Bank.
Although the banks have slightly lower capital ratios compared with larger Saudi banks, the rating agency recognised that the institutions benefited from low non-performing loan ratios, high loan loss reserve coverage and strong profitability.
All three banks retained their A Issuer Default Rating (IDR).
Fitch affirmed the ratings of a further eight banks without any revision to their outlooks.
The rating agency said all the Saudi banks benefit from a favourable operating environment, a conservative and hands-on regulator and high barriers into the Saudi Arabian banking market.
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