The long-term foreign currency rating and the Financial Strength Rating (FSR) of Arab Tunisian Bank (ATB) and Banque de Tunisie (BT) were affirmed at 'BB+' and (BT) respectively, according to the weekly report issued by Byblos Bank.

Capital Intelligence (CI) has affirmed the ratings of three other banks, which are Banque Internationale Arabe de Tunisie (BIAT) and Attajiri Bank at 'BB' and (AB) respectively. Moreover, long-term foreign currency rating of Banque Nationale Agricole (BNA) was affirmed at 'B+', while its FSR was at 'B'.

CI noted that the outlook on all banks' ratings was 'stable', except for the long-term foreign currency ratings of ATB and BT which had a 'negative' outlook, according to the Bank’s report.

The report noted that “The agency indicated that BIAT's FSR is supported by its good liquidity profile, sound base of liquid assets, improved profitability and increased loan loss coverage, but is constrained by a low capital position and a high non-performing loans (NPL) ratio.”

Noteworthy, the Tunisian government has 66% stake in BNA, which supported the Bank’s foreign currency ratings. However, CI noted that “the ratings are constrained by the bank's weak financial profile, poor asset quality, insufficient coverage, and low levels of liquidity and capital.”

Furthermore, AB's FSR reflected its better-than-sector average liquidity, sound profitability, and adequate capital, but was constrained by low provisioning coverage.

Meanwhile, ATB's FSR was backed by good liquidity ratios, adequate capital position, improved loan-loss coverage, and reasonable profitability. However, it was constrained by a high NPL ratio and very difficult operating conditions.

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