S&P downgrades outlook on 4 Saudi banks to negative; maintains ratings

Standard & Poor's Rating Agency (S&P) revised its outlook for National Commercial Bank (NCB), Riyad Bank, Al-Rajhi Bank and Samba Financial Group to negative from stable.

Meanwhile, the rating agency affirmed the A+ long-term and A-1 short-term credit ratings for the four banks.

Earlier this month, S&P downgraded its outlook for the kingdom to negative as global oil prices continued to tumble. The agency said it expects that weak oil prices will eventually strain Saudi’s fiscal budget as the kingdom struggles to diversify its economy and reduce its dependency on oil.