Moody's Investors Service has placed Saudi American Bank (Samba)’s C+ financial strength rating on review for possible downgrade. This action does not affect the bank's Baa2/Prime-2 ratings for foreign currency deposits.
According to Moody's, the review was triggered by the change in Samba's relationship with Citigroup, its 20 percent shareholder and partner of long standing. The rating agency notes that Samba is strongly rated, and although it believes the bank remains well positioned in the Saudi Arabian market, the benefits derived from its association with Citigroup have been key positive factors in its rating.
Moody's explains that the rating review will focus on assessing the impact on Samba's franchise of the possible withdrawal of up to twenty key Citigroup-seconded staff, the severing of operational and technical support agreements with Citigroup, but also Samba's initiatives to manage this change.
Saudi American Bank is headquartered in Riyadh, Saudi Arabia and had total assets of 78.7 billion Saudi riyals($21 billion) as of June 30, 2003. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
