Fitch Affirms Bank Aljazira’s IDR at ‘BBB+, VR at ‘bb+’; Resolves VR’s Rating Watch Negative

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

Several Saudi banks’ VRs were placed on RWN in March 2020 following a drop in oil prices and economic disruptions amid the COVID-19 pandemic. The resolution of the RWN on BAJ’s VR based on the company’s 3Q 2020 financial results reflects Fitch’s view of the lower short-term risk of a sudden drop in BAJ’s financial profile.

BAJ’s IDRs are driven by sovereign support as reflected in its Support Rating Floor (SFR) of ‘BBB+’. The Negative Outlook reflects Saudi’s sove...