Capital Intelligence has recently maintaned the ratings of Société Tunisienne de Banque (STB), as its Financial Strength Rating (FSR) was affirmed at 'B-', according to CPI Financial.

Meanwhile, such rating reflects the weak financial condition of the Bank, specifically the negative equity position, high level of non-performing loans (NPLs), tight liquidity, and losses over the past two years.

The Bank’s Long and Short-Term Foreign Currency Ratings were affirmed at 'B' and 'B' respectively. Moreover, the Outlook for all ratings is 'Stable'. Furthermore, the STB Support Rating was affirmed at '3'.

STB, which is Tunisia’s fourth largest bank, had its financial profile at a very weak level resulting from poor loan asset quality, tight liquidity, and a negative equity position.

According to CPI Financial, “The Bank needs a substantial injection of capital from the state, together with the sale or transfer of bad loans. This should happen in 2015, following the completion of the audit on all Tunisian state banks by the authorities. The audit report is expected to be completed and results disclosed in Q1 2015.”

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