Written by 23:57 News, Saudi Arabia

Moody’s Raises the Ratings of Eleven Saudi Banks

Moody's Raises the Ratings of Eleven Saudi Banks

RIYADH: Because of a favorable operating environment, Moody’s has raised the long-term deposit and senior unsecured ratings of eleven Saudi banks. The ratings agency also credited the decision, which impacts Saudi National Bank, Al Rajhi Bank, and Riyad Bank, to the Kingdom’s government’s greater ability to assist the banks in times of need. Earlier in November, Moody’s downgraded the Saudi government’s issuer rating from Aa3 to A1, and its outlook from positive to stable.

The most recent adjustment also affects Arab National Bank, Bank AlBilad, the Saudi Investment Bank, and Saudi Awwal Bank, Banque Saudi Fransi, and Alinma Bank. Changes also occurred at Gulf International Bank and Bank AlJazira in Saudi Arabia. With the exception of Al Rajhi Bank, which already had that rating, the agency also altered the outlook for all banks’ long-term deposit ratings from positive to stable.

“We expect non-hydrocarbon private sector GDP to continue expanding by about 4-5 percent in the coming years – among the highest in the Gulf Cooperation Council region and an indication of continued progress in diversification that will reduce the Kingdom’s exposure to oil market developments and long-term carbon transition over time,” Moody’s said in a press release, adding that credit conditions for banks in Saudi Arabia are improving as economic diversification momentum remains robust.

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