...Sovereign Support Drives Ratings: The Saudi Investment Bank's (SAIB) Issuer Default Ratings (IDRs) reflect a high probability of support from the Saudi authorities, if required. Fitch Ratings' view of support considers the authorities' strong ability and willingness to support banks, but also SAIB's limited systemic importance in comparison to the larger banks due to its smaller size, market share and franchise. The Viability Rating (VR) reflects the bank's modest franchise, sound asset quality and improved capital ratios, but also weaker underwriting standards and a depressed operating environment. Depressed Economic Environment: SAIB's VR considers the depressed operating environment in Saudi Arabia. Fitch forecasts GDP to contract by 0.4% in 2017, followed by low growth of 0.8% and 1.3% for 2018 and 2019, respectively, as the kingdom continues with fiscal tightening, limiting opportunities for the banks to finance infrastructure projects. There are signs of credit deterioration, but...
