Moody’s has changed the outlook for the banking system in Saudi Arabia from “stable” to “positive”.
While the agency kept its outlook stable for the banking systems in the Emirates, Bahrain, Oman, Qatar and Kuwait.
Moody’s stated that high oil prices and the Kingdom’s reform plan boost economic growth, business confidence and government spending.
Last April, Fitch Ratings raised the rating of eight Saudi banks, after it had recently raised the kingdom’s sovereign rating.
On April 5, Fitch upgraded Saudi Arabia’s rating to “A+” from “A”. The agency attributed the upgrade of the Kingdom’s rating to the domestic and external public financial strength, including the debt-to-GDP ratio and the strong net foreign sovereign assets, with a stable outlook.
The agency said that the rating of eight Saudi banks was raised to “A-” from “BBB +”. The rating upgrade included Riyad Bank, Alawwal Bank “SABB”, Banque Saudi Fransi, Arab National Bank, Al-Inma Bank, The Saudi Investment Bank, Al-Jazira Bank, and Gulf International Bank – Saudi Arabia.
