...Standalone Strength Drives Ratings: Saudi British Bank's (SABB) Issuer Default Ratings (IDRs) are driven by its standalone creditworthiness, as indicated by its Viability Rating (VR). The VR reflects the bank's strong capitalisation and profitability, and sound liquidity. The VR benefits from the bank being an associate of HSBC Holdings plc (AA-/Stable). The VR also considers the bank's highly concentrated loan book and the depressed operating environment in Saudi Arabia. Strong Capital Metrics: Strong capital buffers have a high influence on SABB's VR. The bank's Fitch Core Capital (FCC) ratio was 18.4% at end-3Q17, comparing well with peers. Capital metrics have been improving thanks to low loan growth and provide sizeable buffers relative to SABB's risk profile. Depressed Operating Environment: Fitch Ratings forecasts a real GDP contraction of 0.4% for 2017 and growth of 0.8% for 2018 as the kingdom continues with fiscal tightening, limiting opportunities for the banks to finance infrastructure...
