...Standalone Strength Drives IDRs: Saudi British Bank's (SABB) IDRs are driven by its intrinsic creditworthiness, as indicated by its Viability Rating (VR). The VR reflects the bank's consistently strong profitability and earnings, comfortable liquidity and strong franchise. It also benefits from being an associate bank of HSBC Holdings plc (HSBC, AA-/Stable) with a technical services agreement with the HSBC group. The VR also considers the weakening domestic operating environment, SABB's slightly lower capital ratios than its larger peers and high borrower concentration. However, Fitch Ratings believes that SABB's large exposures and its investment portfolio are low risk. Weakening Operating Environment: Fitch believes that the Saudi Arabian banking sector faces a tough operating environment, mainly because lower oil prices reduce funds available for government spending and this also filters down to the rest of the economy. Solid Franchise With HSBC Links: SABB has a solid domestic corporate...
