SNB Capital maintains Moody’s "A3" rating with stable outlook, CIS-2 for ESG

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Moody's Investors Service assigned "A3" long-term issuer rating to SNB Capital, with a stable outlook, CIS-2 for ESG.

The A3 long term issuer rating reflects SNB Capital's stand-alone assessment, Moody’s said.

It also added that SNB Capital is strategically important to its parent company, Saudi National Bank (SNB) and benefits from strong financial and operational linkages, in addition to the shared brand name and increasingly shared customer base.

SNB Capital's products complements its parent's company offering, creating significant cross-sale opportunities. SNB Capital also benefits from existing credit facilities with its parent, according to the ratings agency.

Moody's also stated that the stand-alone assessment reflects SNB Capital's leading position in the local market, its good revenue diversification, notably across asset management and securities/brokerage, as well as its strong profit margins "The stable outlook reflects expectations that SNB Capital will continue its sound revenue generation and maintain robust profit margins. We also expect that the issuer will sustain a leading market position across asset management and brokerage segments, benefitting from its strong franchise as well as cross-selling opportunities," Moody's said.

The stable outlook incorporates Moody’s expectation that SNB Capital will grow its market-making activities. The balance sheet expansion is expected be gradual and prudently managed, Moody’s added.