Fitch Ratings has affirmed Wifak International Bank’s (Wifak) National Long-Term Rating at ‘BB-(tun)’ with Negative Outlook, and National Short-Term Rating at ‘B(tun)’, it said in a statement.
Fitch pointed out that Wifak’s ratings are driven by its standalone creditworthiness. They reflect the bank’s small size and market share in a challenging Tunisian operating environment, a still-evolving business model, and weak asset quality.
The Negative Outlook on Wifak’s Long-Term National Rating reflects Fitch view of remaining near-term pressures on the bank’s financial profile from the challenging operating environment of Tunisia relative to other Tunisian issuers, it added.
In particular, Wifak’s asset quality may weaken as a result of the withdrawal of regulatory forbearance measures since 4Q21, Fitch indicated.
It added that this could negatively affect capitalization that has been on a declining trend on the back of strong asset growth.
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