The ratings on Saudi Arabia-based Al Rajhi Bank (ARB) reflect its very strong capitalization by international standards, the resilient and superior profitability, concentrations in loans and deposits that are lower than peers', and high systemic importance stemming from its large domestic retail franchise. The ratings are constrained by the bank's more difficult economic environment, low business and geographic diversification, and increasing competitive pressure. With Saudi Arabian riyal (SAR) 165.4 billion ($44.1 billion) on Sept. 30, 2009, ARB is the fourth-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,
