S&P raises long-term credit rating of #Saudi National Bank | The National

S&P raises long-term credit rating of Saudi National Bank | The National

S&P Global Ratings raised the long-term issuer credit rating of National Commercial Bank, which last week became Saudi National Bank following its merger with smaller rival Samba Financial Group.

NCB’s 'A-' rating and stable outlook reflects on the strength of the merged SNB entity, which received a GCC regional scale rating of 'gcAAA', S&P said in statement on Sunday. It withdrew its rating on Samba after its assets and liabilities were transferred to SNB.

“With a 30 per cent market share built on well-established franchises, SNB now enjoys a prime market position, strong capitalisation and a well-balanced risk profile,” S&P said.

“The stable outlook reflects our expectations that … the joint entity will successfully manage the risks associated with integration and further lending growth.”

Last week, NCB announced the completion of its merger after shareholders of Samba received shares in the merged entity, which formally began operations on April 1. NCB and Samba shareholders approved the merger last month after the Saudi Central Bank, the General Authority for Competition, the Capital Markets Authority and the stock exchange approved the deal.