Outlook on Saudi Bank FCRs Revised to Negative Following Similar Sovereign Action
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Ref: SA 00821 PBK00-01 11 J anuary 202 1
Outlook on Saudi Bank FCRs Revised to Negative Following Similar Sovereign Action
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Outlook on the Long-Term Foreign Currency Rating (LT FCR) of nine Saudi Arabian banks to Negative from Stable.
A complete list of the banks and credit ratings affected can be found below. [To be inserted before publication]
The rating actions follow the recent revision of the Outlook on Saudi Arabia’s sovereign ratings to Negative from Stable on 18 December 2020 . The change in the outlook on the sovereign’s ‘A+’ ratings was driven by the weakening of the government’s fiscal position, with the Covid-19-related slump in global oil demand aggravating already significant budgetary pressures. The outlook revision also took into account CI’s expectation that government debt will increase markedly in 2020-21,…