PARIS (Standard & Poor's) Oct. 5, 2005--Standard & Poor's Ratings Services said today that it assigned its 'A-/A-2' long- and short-term counterparty credit ratings to Saudi Arabia-based Al Rajhi Banking & Investment Corp. (Al Rajhi). The outlook is stable. The ratings on Al Rajhi reflect the bank's healthy retail customer franchise, very high profitability, lower-than-peers concentrations in loans and deposits, and strong capitalization. The ratings are constrained by limited business and geographic diversification, increasing loan leverage and competition, and the bank's vulnerability to shocks in real estate and capital markets. Al Rajhi is one of the most profitable banks in the Gulf. The stellar financial performance of the bank in the first half of 2005 reflects a rapid increase in
