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The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable
Ratings agency Fitch has downgraded the outlooks on 3 Saudi Arabian banks as low Crude Oil prices continue to plague the Kingdom’s economy.
The long-term issuer default ratings of Saudi British Bank, Banque Saudi Fransi and Arab National Bank were revised to negative from stable, Fitch said in a statement.
The revision was based on the tougher operating environment facing the Saudi Arabian banking sector, mainly due to the effect of lower Crude Oil prices on government spending and the filter down effect this has on the rest of the economy.

Fitch Ratings has cautioned that the ratings of Gulf Cooperation Council (GCC) privately-owned corporates are being constrained by relatively weaker corporate governance than their developed market peers. The ratings agency said in a statement that this is mainly due to the absence of an effective independent board, weak transparency and limited disclosure practices and a move in this direction will still take time.

International ratings agency Fitch on Thursday upgraded Al Hilal Bank and affirmed 8 other banks and one non-bank financial institution rating. Fitch said it had upgraded Al Hilal Bank's (AHB) Viability Rating (VR) and affirmed the VRs of the other seven banks and all other ratings. The affirmation of the banks' Long-Term IDRs, Support Ratings and Support Rating Floors, reflects the extremely high probability of support available from the UAE authorities and governments, if required. Abu Dhabi Islamic Bank, Al Hilal Bank, Dubai Islamic Bank, Mashreqbank, Commercial Bank of Dubai, RakBank, Sharjah Islamic Bank, Bank of Sharjah and Dunia have been rated in the report.

Emirates Islamic Bank (EIB) has successfully ended the issuance of $500 million sukuk certificates, maturing in 2017 off their $1,000 million Trust Certificate Issuance Programme. The programme is guaranteed by Emirates NBD rated A3 by Moody's and A+ by Fitch.
Joint lead managers and bookrunners on the transactionwere following banks: Citigroup, Emirates NBD Capital, HSBC Bank Plc, National Bank of Abu Dhabi, Royal Bank of Scotland Plc and Standard Chartered Bank. The transaction structure was a Sukuk Al Musharaka based on Sharikat Al Melk (Co-ownership), with the certificates remaining a senior obligation of EIB.

HSBCAT is considered an important member of HSBC Group under Fitch's "Approach to Rating Insurance Groups".
The rating agency recognizes the support and benefits HSBCAT enjoys from the group's strong branding, product and distribution capabilities, and other management resources.
HSBCAT follows a modified Wakala (agency) model, whereby the takaful operator receives a Wakala fee for the management services it provides to the participants, as well as an incentive fee, expressed as a percentage of surplus from the risk funds. Under this model, HSBCAT's profitability is determined, to a large extent, by its Wakala fee income and expense level.

Fitch Ratings had affirmed Kuwait International Bank (KIB)'s Long-term Issuer Default Rating (IDR) at "A-", Short-term IDR at "F2", Individual Rating at "C/D", Support Rating at "1" and Support Rating Floor at "A-". It said the outlook on the Long-term IDR was stable, adding that the bank's IDRs and Support Rating "reflected the extremely high probability of support that could be expected from the Kuwaiti authorities in case of need, based on the state's history of support for local banks during past systemic crises." It also said that the successful conversion into an Islamic bank and the many structural improvements to its business since the July 2007 conversion.

Fitch Ratings affirmed Kuwait Finance House's (KFH) Long-term Issuer Default Rating (IDR) at 'A+' and Short-term IDR at 'F1'. KFH’s Individual Rating was downgraded to 'C/D' from 'C' and placed on Rating Watch Negative (RWN). KFH's Support '1' and Support Rating Floor 'A+' were affirmed. The Outlook for the Long-term IDR is Stable.