S&P takes rare step to explain Saudi banking downgrades | The National:
"Standard & Poor’s has defended its credit downgrades of five of Saudi Arabia’s biggest banks, saying that more than a year-and-a-half of lower oil prices will start to take its toll on the earnings of lenders.
The agency yesterday took the rare step of explaining the move after Saudi Arabia, the world’s biggest oil producer, criticised S&P in October following a downgrade of the kingdom’s long-term rating.
“We expect credit conditions for Saudi banks will deteriorate through a correction cycle, leading to increased non-performing loans and credit losses, as well as a decline in profitability," wrote the analysts, led by Suha Urgan in Dubai."
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