Saudi banking system outlook revised to negative from stable – Moody’s

Moody’s rating agency has revised Saudi banking system outlook to negative from stable, reflecting expectation of persistently low oil prices, with government spending declines to weigh on sector.

Headlines – Reuters

We expect the operating environment for saudi banks to weaken over the next 12-18 months”

With prospect of lower oil prices for longer and 14% reduction in public spending in 2016, believes credit risks across system are rising

Banks will also continue to remain exposed to event risks stemming from persistently high single-party exposures

Tightening liquidity to likely expose banks to greater funding volatility in line with regional pressures

Moody’s rating agency has revised Saudi banking system outlook to negative from stable, reflecting expectation of persistently low oil prices, with government spending declines to weigh on sector.

(Market News Provided by FXstreet)

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