The ratings on Saudi Arabia-based Al Rajhi Banking & Investment Corp. (Al Rajhi) reflect the bank's healthy customer franchise in the retail sector, excellent profitability, concentrations in loans and deposits that are lower than peers', and strong capitalization. The ratings on the bank also include a one-notch uplift to reflect the opinion of Standard & Poor's Ratings Services that the government of Saudi Arabia would be likely to provide extraordinary support to systemically important banks in distress. 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. In terms of assets, Al Rajhi is the third-largest Saudi bank. With the most extensive branch
