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Moody’s affirms Banque Saudi Fransi rating, outlook negative

Moody’s affirms Banque Saudi Fransi rating, outlook negative
Bank's asset quality is strong but affected by borrower concentration risk
0.51% 29.75 0.15

Riyadh – Mubasher: Moody's Investors Service has affirmed the A1 long-term deposit ratings and P-1 short-term deposit ratings of Banque Saudi Fransi (BSF), and changed the outlook on the bank's long-term deposit ratings to negative from stable.

At the same time, the rating agency affirmed the bank's A1/P-1 counterparty risk assessments and A1(cr)/P-1(cr) counterparty risk ratings.

Moody's also affirmed the bank's baseline credit assessment (BCA) and adjusted BCA at a3.

The rate affirmation is based on the high probability that the bank could receive government support, according to a statement by Moody’s.

The bank enjoys strong profitability and capitalisation, deposit funded balance sheet and adequate levels of liquid assets, the statement noted.

Meanwhile, Moody’s noted that although asset quality is strong, it is affected by borrower concentration risk.

The negative outlook was attributed to pressure on the bank's solvency profile, across asset quality and profitability, and moderating liquidity buffers.