Fitch Ratings has affirmed Tunisia-based Modern Leasing’s National Long-term rating at ‘A-(tun)’ with Stable Outlook, and National Short-term rating at ‘F2(tun)’.
Modern Leasing’s National Long- and Short-term ratings are underpinned by Fitch’s assessment of the probability of support it is likely to receive from its shareholder, Banque de l’Habitat if required.
Modern Leasing is 57%-owned by Banque de l’Habitat, which in turn is 57%-controlled by the
Tunisian state.
Fitch considers the probability of support by Banque de l’Habitat is only moderate as the bank’s creditworthiness including potential state support remains modest in Fitch’s view.
Indeed, Fitch estimates the ability to effectively provide support could be limited despite Modern Leasing being of small size compared to Banque de l’Habitat (around 3% and 8% of Banque de l’Habitat’s assets and equity at end-2011, respectively) and despite Fitch’s assessment of Banque de l’Habitat’s propensity to support Modern Leasing as high.
Given Banque de l’Habitat’s weak creditworthiness on a stand-alone basis, supporting Modern Leasing may in turn require state support for Banque de l’Habitat.
Any deterioration in Fitch’s assessment of Banque de l’Habitat’s propensity and/or ability to support Modern Leasing would likely result in a downgrade of its ratings. Conversely, an upgrade of Modern Leasing’s ratings could be triggered by an increase in Banque de l’Habitat’s control in or deeper integration with Banque de l’Habitat.
Source: Fitch Ratings
