S&P: SABB Sukuk issue BBB+

S&P said it assigned a BBB+ rating to the $2 billion dollar-denominated sukuk program by SABB Sukuk Ltd.

Under the transaction documents, SABB Sukuk will enter, among other contracts, into a Murabaha and a Mudaraba agreement with the Saudi British Bank.

The BBB+ issue rating on the senior tranche of the program reflects the rating on the bank because the transaction fulfils the conditions for rating sukuk at the same level of its sponsor, S&P explained.

The will provide sufficient and timely contractual obligations for the repayment of the periodic distribution amounts and the principal amount at the maturity of the sukuk or in the case of an early dissolution event, S&P said.

The obligations also rank pari passu with the bank's other senior unsecured obligations, the agency noted.

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