S&P upgrades NCB following merger with Samba Financial Group

National Commercial Bank upgraded to 'A-' outlook stable

  
Image used for illustrative purpose. A Saudi man walks outside the Saudi National Commercial Bank (NCB), after a coronavirus outbreak, in Riyadh, Saudi Arabia, March 18, 2020.

Image used for illustrative purpose. A Saudi man walks outside the Saudi National Commercial Bank (NCB), after a coronavirus outbreak, in Riyadh, Saudi Arabia, March 18, 2020.

REUTERS/Ahmed Yosri

S&P Global Ratings has raised its long-term issuer credit rating on the National Commercial Bank (NCB) following the completion of its merger with the Samba Financial Group.

The bank is now rated ‘A-’ outlook stable after the merger, which saw the two banks combine to become the Saudi National Bank (SNB).

The ratings agency also affirmed its 'A-2' short-term issuer credit rating on NCB, assigning a 'gcAAA' Gulf Cooperation Council (GCC) regional scale rating to SNB.

S&P cited the SNB’s status prime position in the market, with 30 percent market share, strong capitalisation and well-balanced risk profile as reasons for the upgrade.

“The stable outlook reflects our expectations that SNB will maintain a solid capital base, and that the joint entity will successfully manage the risks associated with integration and further lending growth,” the agency said in an update.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

(imogen.lillywhite@refinitiv.com)

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