Moody's Investors Service has raised the financial strength rating for Saudi Arabia’s Arab National Bank to C- from D+. The bank's foreign currency deposit ratings remain unchanged, set at the Baa2/Prime-2 country ceilings and have stable outlook.
Moody's said in a press release that ANB's rating upgrade reflects the bank's strengthened core earning power, improved asset quality position and growing business franchise. Since its strategic re-focus and business re-engineering in 1998, Moody's explained, ANB has become a more proactive institution and uplifted its competitiveness and financial performance.
With greater emphasis placed on retail banking business, and better product and service delivery, the bank has managed to strengthen materially its earning power, bringing it more in line with the key performers in the market. Its asset quality has also been enhanced following the adoption of tight credit risk management and the build up of comfortable provision reserves. Moody's said that it expects these operational improvements to enable the bank to grow its franchise in the Kingdom, making it more defensible against competition.
Arab National Bank is headquartered in Riyadh, Saudi Arabia, and had total assets of 47.9 billion Saudi riyals ($ 12.8 billion) as of September 30, 2003. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
