...Standalone Strength Drives Ratings: Banque Saudi Fransi's (BSF) Issuer Default Ratings (IDRs) are driven by its intrinsic creditworthiness (as indicated by its Viability Rating, VR). They are also underpinned by an extremely high probability of support from the authorities in Saudi Arabia if needed. The VR reflects a lower risk appetite, sound asset quality and profitability, a solid corporate franchise and benefits from BSF's links with Credit Agricole Corporate and Investment Bank (CACIB: A+/Stable), but also a depressed operating environment. Lower Risk Appetite: BSF's VR is highly influenced by its low risk appetite. Underwriting standards are among the most conservative and consistent in the sector. Single-name concentrations exist, but are lower than peers' despite BSF's corporate-driven business model. Sound and Stable Asset Quality: Asset quality also has a big influence on BSF's VR. The bank has reported consistently low loan impairment charges. Asset quality has weakened, in line...
