...Ratings Driven by Standalone Strength: Arab National Bank's (ANB) Issuer Default Ratings (IDRs) are driven its Viability Rating (VR), but also consider an extremely high probability of support, if required from the authorities in Saudi Arabia (AA-/Negative). The recent downgrade of the bank's IDRs follows Fitch Ratings' downgrade of the Saudi Arabian sovereign. ANB's VR reflects strong liquidity, consistently sound profitability and the benefits of being an associate bank of Arab Bank Plc (BBB-/Negative). The VR also considers some concentrations on both sides of the balance sheet, as is similar to other Saudi banks, and capital ratios that are below the sector average. Weakening Operating Environment: Fitch believes that the Saudi Arabian banking sector faces a tough operating environment, mainly because of the impact of lower oil prices on government spending and the effect this has on the rest of the economy. Solid Domestic Franchise: ANB enjoys solid market shares in its key markets...
