...Intrinsic Strength Drives IDRs: Arab National Bank's (ANB) Issuer Default Ratings (IDRs) and Viability Rating (VR) reflect its benign operating environment and sound financial metrics, including strong liquidity and earnings. The ratings also consider operational benefits from being part of the Arab Bank Group (Arab Bank Plc; BBB-/Negative), as well as weaker asset quality than similarly rated domestic peers. Benign Operating Environment: ANB benefits from a favourable operating environment in Saudi Arabia. There are high barriers to entry and a strict, hands-on regulator. Growth prospects are solid, supported by significant government spending. Strong Liquidity: ANB has a large portfolio of liquid government securities. Although there are contractual mismatches in the tenor of the bank's assets and liabilities, this is mitigated by significant public sector deposits that are strategically placed and historically stable. Strong Profitability Metrics: ANB's profitability metrics are in line...
