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 terms of assets in the Kingdom of Saudi Arabia (AA-/Stable/A-1+). With the most extensive distribution network in the kingdom (about 430 branches), the bank has built up the widest demand deposit base. Given its size and retail entrenchment, Standard
