Fitch Ratings on Oct. 7 took ratings actions on multiple Saudi banking entities following the recent downgrade of Saudi Arabia's sovereign rating due to rising geopolitical tensions in the Gulf region.
The rating agency downgraded the support ratings of National Commercial Bank, Riyad Bank, Banque Saudi Fransi, Saudi British Bank, Al Rajhi Banking & Investment Corp. and Samba Financial Group to 2 from 1. The agency also revised the support rating floors of National Commercial Bank, Riyad Bank, Banque Saudi Fransi, Saudi British Bank, Al Rajhi and Samba to BBB+ from A-.
Meanwhile, Fitch downgraded the long-term issuer default ratings of Banque Saudi Fransi and Riyad Bank to BBB+ from A-, with stable outlooks. The agency affirmed their short-term issuer default ratings at F2.
Further, the agency affirmed the BBB+/F2 long- and short-term issuer default ratings of Gulf International Bank - Saudi Arabia, Bank AlJazira, Alinma Bank and Saudi Investment Bank, with stable outlooks on the long-term ratings. The agency also affirmed these banks' 2 support ratings and BBB+ support rating floors.
In addition, the agency affirmed Arab National Bank's 2 support rating and BBB+ support rating floor.
The actions reflect the agency's view that Saudi banks' support ratings and support rating floors are sensitive to changes in the Saudi Arabia's sovereign rating.
