Strong customer franchise in the retail sector Superior and sustained profitability Lower-than-peer concentration risks in loans and deposits Strong capitalization Low business and geographic diversification More difficult environment due to lower oil prices Increasing competitive pressure Large maturity mismatch The ratings on Saudi Arabia-based Al Rajhi Bank reflect the bank's healthy customer franchise in the domestic retail sector, superior and sustained profitability, concentrations in loans and deposits that are lower than peers', and strong capitalization. The ratings are constrained by the bank's low business and geographic diversification and large maturity mismatch. In addition, the bank will have to operate in a more difficult environment due to lower oil prices and increasing competitive pressure. Al Rajhi is the third-largest bank in
