Moody’s assigns counterparty risk ratings to 11 Saudi banks

Moody's Investors Service, a global ratings agency, has assigned counterparty risk ratings (CRR) to 11 banks in Saudi Arabia, it said in a statement on Thursday.

The banks include Al Rajhi Bank; Alawwal Bank; Arab National Bank; Bank Aljazira; Bank AlBilad; Banque Saudi Fransi; National Commercial Bank; Riyad Bank; Samba Financial Group; Saudi British Bank and The Saudi Investment Bank.

The ratings were assigned following June 6 update to Moody's banks rating methodology, the statement added.

CRR are opinions of the ability of entities to honor the uncollateralized portion of non-debt counterparty financial liabilities (CRR liabilities) and also reflect the expected financial losses in the event such liabilities are not honored. 

Argaam has compiled a list of ratings assigned to the banks:

1) Al Rajhi Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, two notches above its adjusted baseline credit assessment (BCA) of a3

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

2) Alawwal Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A2, three notches above its adjusted BCA of baa2

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

3) Arab National Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, three notches above its adjusted BCA of baa1

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

4) Bank Aljkazira

- Local currency and foreign currency long-term Counterparty Risk Ratings of A3, three notches above its adjusted BCA of baa3

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-2

5) Bank AlBilad

- Local currency and foreign currency long-term Counterparty Risk Ratings of A2, three notches above its adjusted BCA of baa2

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

6) Banque Saudi Fransi

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, two notches above its adjusted BCA of a3

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

7) National Commercial Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, three notches above its adjusted BCA of baa1

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

8) Riyad Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, three notches above its adjusted BCA of baa1

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

9) Samba Financial Group

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, one notch above its adjusted BCA of a2

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

10) Saudi British Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A1, two notches above its adjusted BCA of a3

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1

11) The Saudi Investment Bank

- Local currency and foreign currency long-term Counterparty Risk Ratings of A2, three notches above its adjusted BCA of baa2

- Local currency and foreign currency short-term Counterparty Risk Ratings of P-1