...Standalone Strength Drives IDRs: Al Rajhi Bank's (ARB) Issuer Default Ratings (IDRs) reflect its standalone credit profile as indicated by its Viability Rating (VR). They are also underpinned by an extremely high probability of support from the Saudi Arabian authorities (A+/Stable), if needed. ARB's VR is driven by the bank's leading retail franchise, low-risk business model and a granular funding base. The VR also reflects sound capitalisation and a benign operating environment in Saudi Arabia. Leading Retail Franchise: ARB's VR is highly influenced by the bank's leading retail business model. ARB is the lead retail bank in the Kingdom, underpinned by its Islamic status and huge branch network. The bank was responsible for 37% of all domestic retail financing at end-2017 and is the largest wholly Islamic bank in the world. Retail financing accounts for a large proportion of the bank's total financing (70% at end-1Q18), which is far in excess of domestic peers'. Low-Risk Business Model:...
