RIYADH, 12 July 2007 — Fitch Ratings has recently upgraded Saudi Arabia-based Arab National Bank’s (ANB) Long-term Issuer Default Rating (“IDR”) to ‘A’ from ‘A-’ (A minus), Short-term IDR to ‘F1’ from ‘F2’ and Individual rating to ‘B’ from ‘B/C’.
Simultaneously, the agency has affirmed ANB’s Support ‘2’ rating. Following the upgrade, the bank’s outlook is now stable. Fitch executives said that their rating reflected ANB’s sustained strong performance, which Fitch expects to continue for the next few years while the Saudi Arabian economic environment remains benign.
“The bank’s planned joint venture businesses in housing finance, heavy equipment leasing and banc assurance will provide increased revenue diversification,” they added. “Fitch rating acknowledges ANB as a solid bank with a conservative risk and financial management and prudent treasury operations that are critical in upgrading our rating”. Dr. Robert Eid Managing Director and CEO, ANB said.
ANB’s 2006 results showed a strong performance with reported net income of $668 million, equating to an operating return on equity of 35 percent.
