Fitch affirms ANB Long-Term IDR at ‘BBB+’, outlook negative

Fitch Ratings affirmed Arab National Bank’s (ANB) Long-Term Issuer Default Rating (IDR) at “BBB+”, with a Negative outlook.

The assessment considers the Saudi authorities’ strong ability to support the banking system, given large, albeit decreasing, external reserves, the ratings agency said in a report today, June 21.

ANB benefits from a stable funding profile and reasonably low cost of funding, in line with the peer average. Liquidity is sound as reflected by a Basel III liquidity coverage ratio, which helps mitigate deposit concentrations.

The bank has a good domestic franchise and has successfully built a sustainable and profitable retail banking arm.

Furthermore, ANB benefits from being an associate of Arab Bank, which has a sizeable presence across the Middle East and North Africa, the report noted.