Action follows earlier review of Saudi sovereign risk
Rating agency Standard & Poors (S&P) has revised the outlook of four Saudi Arabian banks to negative from stable.
The move follows a similar rating action taken by S&P on the Kingdom of Saudi Arabia earlier in February.
In light of falling oil prices and subsequent pressure on Saudi government finances, the agency put the kingdom on negative watch, while affirming the AA-/A-1+ rating.
The agency says that it considers the four banks as highly systemically important to Saudi Arabia, and, therefore, it would be highly likely the government would provide support to the financial institutions if ever required.
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