Standard and Poor's assigns rating of A- to The Saudi British Bank

Standard and Poor's ascribed its rating to "SABB's stable and strong financial performance, as well as its 40% ownership by the HSBC Group". S&P also commented that SABB "displays one of the most solid asset quality indicators among banks in the Middle East" and "is recognised as flexible and innovative, differentiating itself through quality service".

SABB recently reported its 2004 year-end results showing a 30 per cent, increase in net profit to SAR1,636 million (US$436 million) and total assets at 31 December 2004 of SAR57.9 billion (US$15.4 billion).

SABB also announced plans to issue a US Dollar-denominated, five-year, floating rate "Regulation S" eurobond in the near future -becoming the first Saudi Arabian company to issue a eurobond. It intends to issue the bond under a newly established Euro Medium Term Note (EMTN) programme. The issue is part of SABB's medium-term funding strategy and is intended to open new markets for Saudi borrowers. It will be marketed in the Middle East, Asia and Europe and SABB has appointed the HSBC Group as lead manager.

Geoff Calvert, managing director of The Saudi British Bank, said: "The rating not only affirms the bank's strong financial performance and market position, it is also testimony to SABB's ability to provide a full range of quality services to meet customer needs and its innovative strategy.

"Obtaining the rating is the first step towards implementing our innovative capital markets strategy. A debut eurobond (the first by a Saudi issuer) will follow in the near future and we intend to take the lead in developing the use of global capital markets by Saudi Arabian borrowers. We will demonstrate the growing sophistication of the Kingdom's markets and the growing profile Saudi Arabia has amongst international investors."