Riyadh – Mubasher: Fitch Ratings has affirmed the Saudi Investment Bank's (SAIB) Long-Term Issuer Default Rating (IDR) at “BBB+” with a stable outlook, according to Fitch’s recent report.

Fitch Ratings, which is one of the big three credit rating agencies, has also affirmed the bank's Viability Rating (VR) and Support Rating Floor (SRF) at “bbb-“ and “BBB+”, respectively.

“The IDRs of SAIB are driven by its SRF of 'BBB+', which is higher than its VR. The Stable Outlook on SAIB's IDR mirrors that on the sovereign rating (A+/Stable) as the probability of sovereign support drives the Long-Term IDR,” the report highlighted.

The bank’s SR and SRF reflect Fitch's view of a high probability of support for the bank, if needed, from the Saudi authorities.

Fitch’s assessment based on a long track record of support for Saudi banks, continued government willingness to maintain stability in the domestic financial system and a strong ability to support the bank, given large, albeit decreasing, external reserves, and increased access to external markets.

“SAIB's SR and SRF also reflect the bank's lower relative systemic importance compared with that of the larger banks we rate, due to the bank's smaller size, market share and franchise,” Fitch said.