Capital Intelligence Ratings (CI), the international credit rating agency affirmed the ratings of Arab Tunisian Bank (ATB), based in Tunis, Tunisia, it announced Tuesday.
ATB’s Financial Strength Rating (FSR) is maintained at ‘BB+’.
The FSR is supported by the Bank’s adequate liquidity, relatively sound loan asset quality, and reasonable profitability.
The rating is constrained by the level of non-performing loans (NPLs), weak customer deposit growth, together with the difficult operating conditions, and a challenging banking sector, said CI.
It added that any deterioration in ATB’s key financial metrics is likely to see downward pressure on the FSR.
The ratings agency also pointed out that ATB’s Long- and Short-Term Foreign Currency Ratings (FCRs) are affirmed at ‘BB’ and ‘B’, respectively and are at the level of CI Ratings’ internal assessment of sovereign credit risk for Tunisia. The Outlook for all ratings is affirmed at ‘Stable’.
The Support Rating is maintained at ‘3’ due to Arab Bank of Jordan ownership. Support from Arab Bank would be expected to be forthcoming if needed, CI stressed.