The Long-and Short-Term Foreign Currency Ratings of Banque Internationale Arabe de Tunisie (BIAT) were maintained at 'BB', and 'B', respectively by Capital Intelligence (CI). The Bank's Financial Strength Rating (FSR) was also reaffirmed at 'BB'. All ratings were reaffirmed with 'Negative' Outlook, however, due to the still significant challenges in the operating and economic environment - and particularly in respect of the FSR, possible further deterioration in asset quality and the short-term need for additional capital. The Support Rating is affirmed at '4', reflecting a moderate level of support.
BIAT is one of the leading private-sector banks in Tunisia, dominating over ten% of sector assets. It holds over a fifteen% market share of customer deposits, CI added.

BIAT's performance in 2011 was overall steady given the circumstances. Although BIAT's NPLs rose only marginally in 2011, the increase accelerated in H1-12. Going forward, it is likely that classified loans will rise further.

Supporting the Bank's financial position is its adequate liquidity profile with a sector-high level of customer deposits as well as a sound base of liquid assets. Its adequate liquidity profile is in contrast to the peer group and sector overall, which display very tight liquidity. BIAT's capital position is considered very low, however, and the Bank requires additional capital, the rating agency concluded.