Fitch cuts Saudi British Bank

Fitch Ratings said it downgraded Saudi British Bank’s long-term issuer default rating to BBB+ from A- and viability rating to bbb+ from a-. At the same time, Fitch removed the rating watch negative on the bank’s IDR and assigned it a stable outlook.

“The downgrade of SABB’s VR reflects Fitch’s expectations that the bank’s capitalization will come under pressure following the completion of the merger with Alawwal Bank and in the context of a challenging domestic operating environment, which will force up provisions for bad debt,” Fitch said in a press release.

Under Fitch’s methodology, the issuer rating is driven by the VR and the bank’s support rating floor, which Fitch affirmed at BBB+, the agency said.

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