Fitch Affirms Alinma Bank’s Long-Term IDR at ‘BBB+’; Resolves RWN on Viability Rating

Fitch Ratings has affirmed Saudi-based Alinma Bank’s (Alinma) Long-Term Issuer Default Rating (IDR) at BBB+, with a Negative Outlook. In addition, Alinma’s Viability Rating (VR) has been affirmed at ‘bbb’ and removed from Rating Watch Negative (RWN).

According to Fitch, ten Saudi Arabian banks’ VRs were placed on RWN in March 2020 amid heightened risks of severe weakening in the domestic operating environment following COVID-19 economic disruptions and the sharp drop in oil prices. The resolution of the RWN on Alinma’s VR by Fitch is based on the company’s 3Q 2020 financial results and reflects Fitch’s view of reduced short-term risk of a sudden drop in its financial profile.

Meanwhile, Alinma’s IDRs are driven by...