Global Arab Network | Fitch Rates Banque Saudi Fransi's bn EMTN Programme with Stable Outlook

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Fitch Rates Banque Saudi Fransi's $2 bn EMTN Programme with Stable Outlook

Global Arab Network - - Gamal Ragay

Thursday, 08 April 2010 01:42

Fitch Ratings has assigned Saudi Arabia-based Banque Saudi Fransi's (BSF) USD2bn euro medium-term note (EMTN) programme a Long-term senior debt rating 'A' and Short-term senior debt rating 'F1'.

However, Fitch notes that there is no assurance that notes issued in future under the programme will be assigned a rating, or that the rating assigned to a specific issue under the programme will have the same rating as the programme rating. Fitch does not assign generic programme ratings to subordinated debt, which will be rated on a case-by-case basis.

BSF is rated Long-term Issuer Default rating (IDR) 'A' with a Stable Outlook, Short-term IDR 'F1', Individual 'B/C', Support '1' and Support Rating Floor 'A-'.

Established in 1977, BSF is a Saudi-based commercial bank, whose main business lines are corporate banking and treasury, and it is expanding its retail banking and investment services.

BSF is listed on the Saudi Stock Exchange. Credit Agricole SA ('AA-'/Outlook Stable) via its corporate and investment banking arm, Calyon ('AA-'/Outlook Stable), owns 31.1% of the bank and provides technical and management assistance under a rolling five-year agreement. The Saudi government, via the Government Organisation for Social Insurance (GOSI), holds a further 12.8%.

BSF operates through 77 branches and several joint ventures with Credit Agricole/Calyon within the Kingdom. BSF ranks as the sixth largest commercial bank in the Kingdom in terms of total assets, and has an approximate 10% share of the Saudi banking market.

In Fitch's rating criteria, a bank's standalone risk is reflected in Fitch's Individual ratings and the prospect of external support is reflected in Fitch's Support ratings. Collectively these ratings drive Fitch's Long- and Short-term IDRs.

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