...Ratings Driven by Intrinsic Strength: Saudi British Bank's (SABB) Issuer Default Ratings (IDRs) are driven by its Viability Rating (VR), but also consider an extremely high probability of support, if required, from the Saudi Arabian authorities. The VR reflects the bank's consistently strong profitability and earnings generation, comfortable liquidity, strong franchise and the benefits of being an associate bank of HSBC Holdings plc (AA-/Stable). The VR also considers a weakening domestic operating environment, SABB's slightly lower capital ratios than its peers and high single obligor concentration. Weakening Operating Environment: Fitch Ratings believes that the Saudi Arabian banking sector is facing a tougher operating environment, mainly due to the impact of lower oil prices on government spending and the filter-down effect this has on the rest of the economy. Consistently Strong Profitability: SABB's ratings benefit from higher profitability metrics than peers. Profitability benefits...
