...Standalone Strengths Drive Ratings: Saudi British Bank's (SABB) Issuer Default Ratings (IDRs) reflect its standalone credit profile as indicated by its Viability Rating (VR). The VR is highly influenced by the bank's strong capital position and also considers its sound financial metrics and links to HSBC Holdings plc (AA-/Stable), its 40% shareholder. Strong Capital Position: SABB is well capitalised, with a Fitch Core Capital (FCC) ratio of 19.1% at end-1H18. This is one of the highest in the Saudi banking sector. It also compares well with international peers, given the use of the standardised approach to calculate risk- weighted assets. Benefits from HSBC Links: SABB's VR considers benefits from its links with HSBC, which include a longstanding technical services agreement (TSA), including the provision of seconded staff. It also allows SABB to benefit from HSBC's global brand and network. Sound Financial Metrics; High Concentration: SABB's VR reflects consistent earnings, driven by...
