Fitch affirms Riyad Bank

Fitch Ratings said it affirmed Riyad Bank's long-term issuer default rating at A+ with a stable outlook, short-term issuer default rating at F1, viability rating at a, support rating at 1 and support rating floor at A+.

The agency believes the probability is extremely high that support would be forthcoming from the Saudi authorities if required given the authorities' long track record of support for the banking sector, the bank's large franchise and the state's substantial (indirect) ownership.

The viability rating reflects the bank's strong commercial franchise, consistent profitability and sound liquidity, asset quality and capitalization, Fitch said.

The viability rating also takes into account certain weaknesses, including some concentration in loans and deposits, which is common across the region, and decreasing capital ratios, although these remain high by international standards, the agency said.

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