JEDDAH, 23 May 2006 — Standard & Poor’s Ratings Services has assigned its ‘A-/A-2’ long- and short-term counterparty credit ratings to The Saudi Investment Bank (SAIB). The outlook is stable. “The ratings on SAIB reflect the bank’s robust financial performance, good asset quality supported by a conservative strategy, satisfactory liquidity profile, and good capitalization,” said Standard & Poor’s credit analyst Emmanuel Volland.
Offsetting these positive factors are the bank’s limited customer franchise, smaller size, significant concentration risks, and limited geographic diversification.
The long-term rating includes a one-notch uplift from the stand-alone rating for expected government support in case of distress. Saudi Arabia (A+/Stable/A-1), through public institutions, owns 38.4 percent of SAIB.
Saud Al-Saleh, general manager of SAIB, expressed his happiness over this positive outlook that affirms the financial strength of the bank.
Despite Standard & Poor’s report, SAIB shares dropped 1.21 percent to SR101.75 yesterday.
SAIB is one of the smallest banks in Saudi Arabia, with total assets of $11.1 billion as of March 31.