Moody's Ratings assigns provisional ratings to SAB’s medium-term note program

Riyadh – Mubasher: Moody's Ratings has assigned the provisional local and foreign currency long-term (P)A1 ratings for Saudi Awwal Bank’s (SAB) senior unsecured MTN program, according to a press release.

The agency also assigned the provisional local and foreign currency long-term (P)Baa2 contractual point on non-viability (PONV) subordinated MTN program ratings (Tier 2 PONV ratings) to SAB’s $5 billion medium-term note (MTN) program.

The provisional long-term (P)A1 ratings assigned to SAB's senior unsecured class of notes of the MTN program are aligned with SAB's A1 long-term deposit ratings.

Notes issued under the program will constitute direct, unconditional, unsubordinated and unsecured obligations of SAB.

The provisional long-term (P)Baa2 ratings assigned to SAB's Tier 2 PONV class of notes of the MTN program are positioned two notches below SAB's a3 BCA.

Similar to most banking systems globally, the positioning reflects the specific characteristics of this class of notes and their relative ranking in the liability structure of the bank.

It also highlights SAB's Adjusted BCA that constitutes the anchor point for positioning debt liabilities on our global rating scale.

“We issue provisional ratings in advance of the final sale of certificates, but these ratings only represent our preliminary credit opinion. Upon a conclusive review of the transaction and associated documentation, we will endeavor to assign definitive ratings to any issuance of certificates,” Moody's noted.

It added: “SAB's deposit ratings could be downgraded if we see weaker non-oil GDP growth that could negatively impact operating conditions for banks.”

Likewise, the bank's deposit ratings might be downgraded if the Saudi government's ratings are downgraded.

In the first half (H1) of 2025, SAB recorded 4.94% year-on-year (YoY) higher net profits at SAR 4.26 billion, compared to SAR 4.06 billion.

Mubasher Contribution Time: 25-Aug-2025 11:36 (GMT)
Mubasher Last Update Time: 25-Aug-2025 11:36 (GMT)