(MENAFN) Fitch Upgrades Long-Term Issuer Default Ratings of Eight Saudi Banks to “A-” from “BBB+”. As per the press statement by US credit rating agency Fitch, eight Saudi banks including Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, The Saudi Investment Bank, Bank Aljazira and Gulf International Bank – Saudi Arabia, have received an upgrade in their long-term issuer default ratings. Fitch has upgraded their ratings to “A-” from “BBB+” with a stable outlook. According to Fitch, this upgrade reflects the creditworthiness of these banks relative to other issuers in Saudi Arabia. Fitch has also upgraded international depository receipts of Gulf International Bank and Gulf International Bank UK to “A-” from “BBB+”.

In its report, Fitch noted that Saudi banks are receiving adequate support from the authorities, affirming their financial stability. Fitch mentioned that the authorities have a strong ability to provide support to the banking system through their large external reserves and increased access to external markets. The report also added that there is a long record of support for Saudi banks and Fitch considers the authorities to still have a strong willingness to support the banking system to maintain stability in the domestic financial system.

In addition, Fitch has upgraded the government support ratings of Al Rajhi Banking and Investment Corp. and the Saudi National Bank to “A-” from “BBB+”. However, the long-term issuer default ratings of these banks remain unaffected by the rating actions.

Fitch had earlier upgraded Saudi Arabia’s IDR to “A+” from “A” on April 05. The increase was attributed to Saudi Arabia’s strong financial position, favorable debt-to-gross domestic product ratio and secure sovereign net foreign assets. Fitch added that the improved rating is conditional on Saudi Arabia’s continuous commitment to steady progress with fiscal, economic and governance reforms.

Last week, Fitch also upgraded the rating of oil major Saudi Arabian Oil Co. to “A+” from “A” with a stable outlook. Fitch attributed the rise in Aramco’s rating upgrade to the company’s strong business profile and solid ambitions to deliver a sustainable and progressive dividend.

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