Fitch Ratings has placed Tunisia’s ‘CCC’ Long-Term Foreign- (FC) and Local-Currency Issuer Default Ratings (IDRs) and debt instruments Under Criteria Observation (UCO) following the conversion of the agency’s exposure draft of its Sovereign Rating Criteria into final criteria, it said in statement.
Tunisia’s long-term foreign currency issuer default rating was downgraded by Fitch Rating on March 18, 2022 from ‘B-‘ with a negative outlook to CCC. The agency explained this decision by the delays in reaching an agreement with the International Monetary Fund (IMF).
The rating agency said the UCO indicates that ratings may change as a direct result of the final criteria. It does not indicate a change in the underlying credit profile, nor does it affect existing Outlooks.
“We will resolve the UCO status within six months. The outcomes will depend on Fitch’s assessment of the appropriate notching based on the new criteria. Not all issuers on UCO will have a rating change upon resolution,” it pointed out.
