...Standalone Strength Drives IDRs: The Issuer Default Ratings (IDRs) of Arab National Bank (ANB) reflect its standalone creditworthiness as defined by its Viability Rating (VR), and are underpinned by a high probability of support from the Saudi authorities. The bank's VR reflects its solid domestic franchise, adequate liquidity, adequate capitalisation and sound profitability. The VR also considers ANB's benign operating environment and vulnerable asset quality. Solid Domestic Franchise: ANB has been one of the Kingdom's most successful banks in building a profitable retail banking arm, and is among the sector's more diversified banks. The bank benefits from being an associate of Jordan-based Arab Bank Plc (BB/Stable). Adequate Liquidity: Liquidity is sound as reflected by a Basel III liquidity coverage ratio (LCR) of 186% at end-1H18, which helps mitigate deposit concentration. Funding costs are in line with peer average. High levels of funding concentrations are partly mitigated by the...
