Fitch Ratings: BBB- Rating Assigned to Riyad Sukuk Limited’s Tier 2 Sukuk

Riyad Bank’s USD 1,500 million subordinated Tier 2 Sukuk, which has been issued under its trust certificate issuance programme housed under Riyad Sukuk Limited (RSL), was assigned a long-term rating of BBB-.

The Tier 2 certificates have been rated two grades below Riyad Bank’s BBB+ Long-Term Issuer Default Rating (LT IDR), reflecting their subordinated ranking and also the likelihood of poor recoveries in the event of default.

Riyad Bank’s (the Bank’s) LT IDR is led by the Bank’s financial strength (measured by Fitch’s Viability Rating), as well as the Bank’s BBB+ Support Rating Floor, which assesses the level of external support available...