Moody's Investors Service has changed the outlook for Saudi Arabia’s Bank Al-Jazira's financial strength rating (FSR) of D- to positive from stable. This action does not affect the bank's Baa3/Prime-3 rating for foreign currency deposits, which also has a positive outlook.
The agency said that the change in the FSR outlook reflects the continued steady progress made by Bank Al-Jazira in strengthening its internal systems, growing its operations and improving its financial performance.
The bank is well-capitalized even after allowing for a possible shortfall in loan loss provisions, which have been built up over the last few years to satisfactory levels. Despite the progress, Moody's notes, Bank Al-Jazira remains the smallest bank in the competitive Saudi Arabian market, with around one percent share, and faces challenging prospects in building up a defensible franchise.
Bank Al-Jazira is headquartered in Jeddah and had total assets of 5.2 billion Saudi riyals ($ 1.4 billion) as of 30 September 2002. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
