...Standalone Strength Drives IDRs: Arab National Bank's (ANB) Issuer Default Ratings (IDRs) are driven by its intrinsic creditworthiness as indicated by its Viability Rating (VR). They are underpinned by a high probability of support from the authorities in Saudi Arabia, if needed. The VR reflects the bank's sound domestic franchise, diversified business model and solid financial metrics, but also a depressed operating environment. Depressed Operating Environment: Fitch Ratings forecasts that GDP will contract by 0.4% in 2017 as the kingdom continues with fiscal tightening, limiting opportunities for the banks to finance infrastructure projects. There are signs of credit deterioration, but we believe this will be manageable for banks. Liquidity conditions have eased in 2017 and the increase in the cost of funding was largely passed on to clients. Solid Company Profile: ANB's VR considers the bank's solid market shares in both corporate and retail banking. The bank benefits from being an associate...
