US credit rating agency Fitch has upgraded eight Saudi banks’ long-term issuer default ratings to “A-” from “BBB+,” with a stable outlook, according to a press statement. In this regard, experts told Asharq Al-Awsat that the current account surplus of the Saudi economy over the last period, which exceeded $1 trillion in gross domestic product, in addition to foreign reserves, which remain stable at $459 billion, reflected positively on local banks and contributed to economic strength and financial stability. According to the experts, Saudi banks have proven their resilience thanks to the strength of the Saudi economy, at a time when major international banks have recently declared bankruptcy, including the American Silicon Valley and the Swiss Credit Suisse. Fitch upgraded the rating of eight Saudi banks. Those include Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, The Saudi Investment Bank, Bank Aljazira and Gulf International Bank - Saudi Arabia. The press statement noted that the rating agency also upgraded the Gulf International Bank and Gulf International Bank UK’s international depository receipts to “A-” from “BBB+.” In its report, Fitch noted that banks in Saudi Arabia are receiving adequate support from the authorities, affirming their financial stability. “The authorities have a strong ability to provide support to the banking system given their large external reserves and increased access to external markets,” the agency said. In comments to Asharq Al-Awsat, Fadel Al-Buainain, member of the Saudi Shura Council, said that the Fitch rating upgrade for eight local banks reflected the Kingdom’s strong and sustainable economy. According to Al-Buainain, the current account surplus of the Saudi economy, which exceeded one trillion dollars, managed to revive all local economic sectors, including the private sector, specifically financial institutions. For his part, Economic Analyst Ahmed Al-Shehri told Asharq Al-Awsat that the rating upgrade is attributed to the current account surplus of the Saudi economy during the last period, which exceeded $1 trillion in gross domestic product, and to the foreign reserves, which are still stable at $459 billion. He stressed that the current account surplus and foreign reserves contributed to economic strength and financial stability, pointing at the same time to other supporting factors, such as improved private sector growth and high government expenditure on the local economy. At the beginning of April, Fitch had upgraded Saudi Arabia’s IDR to “A+” from “A.” The increase was attributed to Saudi Arabia’s strong financial position, favorable debt-to-gross domestic product ratio and secure sovereign net foreign assets. The rating agency also highlighted that the improved rating is conditional on Saudi Arabia’s continuous commitment to steady progress with fiscal, economic and governance reforms.