Reuters on the latest from Moody's re Saudi

  • Moody's revises outlook on Saudi Arabia's banking system to negative from stable
  • Outlook on Saudi Arabia's banking system reflects expectation of persistently low oil prices, government spending declines to weigh on sector
  • "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 with calm and reasonable comments. Its not like they've lost their heads or anything. Well, not yet, anyway.

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