...Ratings Driven by Standalone Strength: The Issuer Default Ratings (IDRs) of Arab National Bank (ANB) are driven by its intrinsic creditworthiness, as indicated by its Viability Rating (VR). The VR reflects the bank's solid domestic franchise, the benefits of being an associate bank of Arab Bank Plc (BBB-/Negative), consistently sound profitability metrics, sound asset quality and strong liquidity. It also takes into account the weakening domestic operating environment, some concentration on both sides of the balance sheet and capital ratios that are lower than the sector average. Weaker Operating Environment: The Saudi Arabian banking sector faces a tough operating environment, mainly because lower oil prices reduce funds available for government spending, and this trickles down to the wider economy. Solid Domestic Franchise: ANB enjoys solid market share in its key markets and benefits from being an associate of Arab Bank Plc, with its sizeable presence across MENA. Consistently Sound...
