Fitch Upgrades Saudi Banks’ Rating

Fitch Upgrades Saudi Banks’ Rating

US credit rating agency Fitch has upgraded eight Saudi banks’ long-term issuer default ratings to “A-” from “BBB+,” with a stable outlook, according to a press statement.

In this regard, experts told Asharq Al-Awsat that the current account surplus of the Saudi economy over the last period, which exceeded $1 trillion in gross domestic product, in addition to foreign reserves, which remain stable at $459 billion, reflected positively on local banks and contributed to economic strength and financial stability.

According to the experts, Saudi banks have proven their resilience thanks to the strength of the Saudi economy, at a time when major international banks have recently declared bankruptcy, including the American Silicon Valley and the Swiss Credit Suisse.

Fitch upgraded the rating of eight Saudi banks. Those include Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, The Saudi Investment Bank, Bank Aljazira and Gulf International Bank - Saudi Arabia.

The press statement noted that the rating agency also upgraded the Gulf International Bank and Gulf International Bank UK’s international depository receipts to “A-” from “BBB+.”

In its report, Fitch noted that banks in Saudi Arabia are receiving adequate support from the authorities, affirming their financial stability.

“The authorities have a strong