Tuesday 14, March 2017 by Jessica Combes

Ratings of Samba Financial Group lowered; outlook is ‘Stable’

Samba Financial Group (SAMBA), based in Riyadh, Saudi Arabia has had its Financial Strength Rating (FSR) and the Foreign Currency Ratings (FCRs) lowered owing to the recent change in the Sovereign Ratings of the Kingdom of Saudi Arabia, according to announcement by Capital Intelligence Ratings (CI Ratings or CI), the international credit rating agency.

The long-term FCR is lowered to ‘A+’ from ‘AA-’ and the short-term FCR is lowered to ‘A2’ from ‘A1’. At the same time, the outlook is changed to ‘Stable’ from ‘Negative’. These ratings are constrained by the sovereign rating.

The change in the Sovereign Ratings also affects the Bank’s FSR, which is lowered to ‘A+’ from ‘AA-’. The Outlook for this rating remains ‘Stable’.  

The ratings are supported by SAMBA’s very strong capital ratios, strong liquidity, strong and continually improving asset quality, and sound net profitability. The ratings are constrained by the Bank’s still relatively low net special commission income, by the level of concentration among its individual borrowers and non-bank depositors, as well as by the current operating environment.  

In view of the Bank’s position in the Saudi banking sector, official financial support is expected to be forthcoming in the unlikely event it is needed. Consequently, the Support Rating remains at ‘2’.

 

  

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