...Support Drives IDRs: Riyad Bank's Issuer Default Ratings (IDRs) reflect an extremely high probability of support from the authorities in Saudi Arabia (A+/Stable), if needed. Fitch Ratings' assessment of support takes into account the authorities' long record of support for Saudi banks, continued willingness to maintain stability in the domestic financial system and a strong ability to support banks given large external reserves and good access to external markets. It also considers Riyad's systemic importance as one of the largest banks in the Kingdom. The bank's Viability Rating (VR) reflects its solid franchise, sufficient liquidity and solid capitalisation. The VR also considers the benign domestic operating environment, weakening asset quality and lower profitability than larger peers. Benign Domestic Environment: Domestic credit in Saudi Arabia contracted in 2017 and any growth in 2018 is likely to be muted. Banking sector asset quality remains under pressure, albeit from a strong...
