Fitch Ratings has affirmed BH Leasing’s (BHL) National Long-Term Rating at ‘BBB-(tun)’ with a Stable Outlook and National Short-Term Rating at ‘F3(tun)’. It has simultaneously withdrawn the ratings.
The rating agency explains that it has withdrawn BHL’s ratings for commercial reasons. Therefore, Fitch will no longer provide ratings or analytical coverage of the issuer.
National Ratings reflect the creditworthiness of an issuer relative to the country’s best credit and peers operating within Tunisia.
Fitch underlines that BHL’s ‘BBB-(tun)’ National Long-Term Rating reflects support from BH Bank, a large Tunisian bank 50% owned by the state and state-owned enterprises. BH Bank directly holds 42% of BHL and indirectly 75% via BH Bank Group. The bank sets BHL’s strategy and risk appetite. Fitch views BH Bank’s propensity to support as high, but constrained by limited financial flexibility. BHL’s standalone profile is the weakest among peers, although it is improving.
BHL has been profitable since 2021, with an annualized pre-tax income/average assets of 2% in 1H24. Asset quality remains weak: impaired leases were 13.9% at end-1H25 (12.5% at end-2024), despite efforts to meet Central Bank of Tunisia’s end-2026 non-performing loan target through write-offs, tighter underwriting and stronger monitoring and recoveries.
The Stable Outlook reflects Fitch’s opinion that support assumptions regarding the ability and propensity of institutional support will remain largely unchanged.
