The ratings on Saudi Arabia-based Al Rajhi Bank (ARB) reflect Standard&Poor's Ratings Services' view of the bank's leading customer franchise in the domestic retail sector, robust capitalization, a good funding and liquidity profile, and resilient and superior profitability. The long-term rating includes a one-notch uplift above the bank's stand-alone credit profile. This reflects Standard&Poor's view that the Saudi government would likely provide extraordinary support to ARB if needed. We consider the government of the Kingdom of Saudi Arabia (AA-/Stable/A-1+) as "interventionist" toward its banking sector and we classify ARB as a highly systemically important bank in Saudi Arabia. The ratings are constrained by the bank's low geographic diversification, weakened operating environment, mounting competition in the Islamic
