The ratings on Saudi Arabia-based Al Rajhi Bank reflect the Islamic bank's healthy customer franchise in the retail sector, excellent profitability, lower-than-peer concentrations in loans and deposits, and strong capitalization. The ratings include a one-notch uplift to reflect the opinion of Standard & Poor's Ratings Services that the Kingdom of Saudi Arabia (A+/Stable/A-1) would likely provide extraordinary support to systemically important banks, such as Al Rajhi, in case of need. The ratings are constrained by limited business and geographic diversification, increasing loan leverage and competition, and vulnerability to real estate and capital market shocks. Al Rajhi is the third-largest Saudi bank in terms of assets. With the most extensive branch network in the kingdom (in excess of 400 branches), the
