Saudi Arabia-Based National Commercial Bank Downgraded To 'BBB+' On Increased Economic Risks; Outlook Stable

We think Saudi banks face increased economic risks, owing to the drop in oil prices and the resulting slowdown in the Saudi economy. We expect credit conditions for Saudi banks will deteriorate through a correction cycle, leading to increased nonperforming loans and credit losses, as well as declining profitability. We are consequently lowering our long-term rating on Saudi Arabia-based The National Commercial Bank to 'BBB+' from 'A-' and removing it from CreditWatch negative. We are also affirming our 'A-2' short-term rating on the bank. The stable outlook reflects our expectation that the bank's business and financial profile will remain resilient over the next 12-24 months. DUBAI (Standard&Poor's) March 31, 2016-- Standard&Poor's Ratings Services today lowered its

...We think Saudi banks face increased economic risks, owing to the drop in oil + prices and the resulting slowdown in the Saudi economy. We expect credit conditions for Saudi banks will deteriorate through a correction + cycle, leading to increased nonperforming loans and credit losses, as well as declining profitability. We are consequently lowering our long-term rating on Saudi Arabia-based The + National Commercial Bank to '###+' from 'A-' and removing it from CreditWatch negative. We are also affirming our 'A-2' short-term rating on the bank. The stable outlook reflects our expectation that the bank's business and + financial profile will remain resilient over the next 12-24 months. DUBAI (Standard & Poor's) March 31, 2016-- Standard & Poor's Ratings Services today lowered its long-term counterparty credit rating on Saudi Arabia-based The National Commercial Bank (NCB) to '###+' from 'A-'. The outlook is stable. At the same time, we affirmed our 'A-2' short-term rating on the bank. We...

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