16 Mar 2016
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
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