VOL. XLI

No. 35

31-August-1998

SAUDI ARABIA

Saudi Banks' Financial Strength Threatened, Warns Moody's

In the latest Banking System Outlook report for Saudi Arabia issued in August,Moody's Investors Service warns that the financial strength of the Saudi banking system isthreatened by falling oil prices and the resultant decline in the economy, although banksare entering the slowdown with strong liquidity and hence the effects have been "slowto bite." The US ratings agency predicts that if oil...